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2015 (10) TMI 2046 - AT - Income TaxDisallowance made U/s. 40(a)(ia) - non deduction of TDS on the interest paid - said interest payments have been accounted by the payee in their Books of Accounts and payee has offered as part of their computation in the return of income. - Held that:- No reason to interfere with the well reasoned order of CIT(A) as he has considered the legal principles established by the Co-ordinate Benches and accordingly, decided the issue. Therefore, the order of CIT(A) is upheld and Revenue’s ground on this is rejected. In fact the Revenue’s ground is that second proviso is effective only from 01-04-2013 and not for the impugned assessment years. Since this issue was already considered and decided that the second proviso to Section 40(a)(ia) is declaratory and curative in nature and has retrospective effect from 01-04-2005 from the date in which sub-clause i.e., section 40(a) was inserted by Finance Act. In view of this, we find no merit in the Revenue’s contentions - Decided against revenue. Credit for Security Transactions Tax - CIT(A) allowed the claim - Held that:- There is a mistake in the direction of CIT(A) to give credit for the Security Transaction Tax as per the provisions of Section 88E. The Ld. CIT(A) failed to notice that vide sub-section 3 of Section 88E, no deduction under this section shall be allowed in or after the assessment year beginning on the first day of April, 2009. Since, the impugned assessment years are after that date, the direction of CIT(A) is not as per the provisions of law. Accordingly, the order of CIT(A) on this issue is set aside. The order of AO is therefore restored. - Decided in favour of revenue.
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