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2016 (8) TMI 1291 - AT - Income TaxAddition U/s 40(a)(ia) - actual interest payment to the financial institutions - amount of paid and payable - Held that:- Since the AR of the assessee has submitted that the amount of tax required to be deducted, has been paid by the creditor in view of 2nd proviso of Section 40(a)(ia) of the Act. This issue should be decided in favour of the assessee. As gone through judgment in the case of CIT Vs Ansal Plaza Mark Township P. Ltd. (2015 (9) TMI 79 - DELHI HIGH COURT) in fact the assessee has not raised this issue before the ld Assessing Officer as well as before the ld. CIT(A). This issue has a factual determination and verification, therefore, it will be in the interest of justice to remand the matter back to the file of the AO to verify the truthfulness on the submission made by the ld AR whereby it was contended that the creditors had already deposited the tax on the interest amount. In the light of the fact, the appeal is allowed for statistical purposes only. It is made clear that if the creditors have deposited the tax on the interest accrued in their favour after having received from the assessee, which was not deducted by the assessee, in that eventuality benefit be extended to the assessee in terms of amended section 40(a)(ia) of the Act. Appeal of the assessee is allowed for statistical purposes only.
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