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2022 (12) TMI 636 - AT - Income TaxDisallowance u/s 40(a)(ia) for non-deduction of tax at source (TDS) - assessee in default - Assessee has paid interest u/s 201(1A) for non-deduction/short deduction of tax - HELD THAT:- Assessee enclosed Form No. 26A namely Form for furnishing Accountant certificate under the First Proviso to sub- Section 1 of Section 201 of the Act, wherein it is certified that interest under Section 201(1a) of Rs. 4,030/- was paid by the assessee for non-deduction or short deduction of tax vide Bank Challan No. 83 dated 22.12.2018. Further as held by the Ld. CIT(A) there is no signature by Chartered Accountant, but Director of the assessee company has signed, but in Page No. 17 the assessee produced the Interest Challan payment of Rs. 4,030/- remitted into Central Bank of India more particularly under the caption Minor Head 200 – TDS/TCS payable by taxpayer. Thus, the assessee having paid the interest of Rs. 4,030/- the assessee cannot be construed as an assessee in default. Therefore, the provision of Section 40(a)(ia) cannot be applied in assessee’s case. Thus, the Ld. Assessing Officer and the CIT(A) has not considered the provision of Section 201(1) of the Act which is not justifiable in law. Therefore, the addition made under Section 40(a)(ia) by the Assessing Officer is hereby deleted. Appeal filed by the assessee is allowed.
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