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2021 (11) TMI 670 - ITAT MUMBAIDisallowing interest expenses u/s. 40(a)(ia) - tax deducted at source was not deposited within due date of filing of return of income -`as contended by the assessee that provisions of section 40(a)(ia) are not applicable in its case as the interest amount paid by the assessee was already accounted for by the payee in its return filed for the relevant assessment year and also paid the requisite taxes - HELD THAT:- Assessee before the Ld.CIT(A) filed evidences to show that the payee has included the interest income in its return of income and paid taxes. - CIT(A) did not admit the evidences. Before us, assessee filed petition under Rule 29 of ITAT Rules for admission of additional evidences which go to the root of the matter. As these evidences are going to the root of the matter the same are admitted. The evidences furnished before us in the form of Profit and Loss Account, Balance Sheet, copy of return filed by the payees and the certificate issued by the Chartered Accountant clearly suggest that the interest paid by the assessee was accounted for by the payees in its Books of Accounts and returns were filed within the due date certified u/s. 139(1) of the Act and taxes were paid on such interest income. No disallowance u/s. 40(a)(ia) is warranted as the payee has accounted for the interest income in its Books of Accounts and filed its return of income u/s. 139(1) of the Act. However, since the information filed by the assessee showing that the payee had accounted for the interest receipts in its Books of Accounts and paid taxes, were never examined by the lower authorities, subject to verification of these evidences by the Assessing Officer, we direct to delete the disallowance made u/s. 40(a)(ia) of the Act. The assessee shall furnish all these evidences before the Assessing Officer. - Decided in favour of assessee.
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