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2016 (2) TMI 463 - AT - Income TaxDisallowance on interest expenses u/s.40(a)(ia) - assessee had not deducted/remitted any TDS on these expenses - Held that:- In the absence of any material to suggest that the amount is outstanding at the end of the close of the previous year relevant to the assessment year, then impugned amount cannot be disallowed u/s. 40(a)(ia) of the Act. Similar view has been taken by the Co-ordinate Bench of Chennai Tribunal in the case of Shri N. Palanivelu Vs. ITO, Salem reported in [2015 (10) TMI 1415 - ITAT CHENNAI]. Accordingly, we direct the Assessing Officer to disallow the only amount which is outstanding at the end of the close of the previous year relevant to the assessment year. Hence, for limited purpose to verify the outstanding amount out of this impugned amount at the end of the close of the previous year relevant to the assessment year, we remit the issue back o the file of the ld. Assessing Officer. Further, we also make it clear that if the assessee paid the TDS before the returns filed u/s.139(1) of the Act, that expenses cannot be disallowed. The ld. Assessing Officer has to decide the issue after giving an opportunity to the assessee for producing necessary evidence. - Decided in favour of assessee for statistical purposes.
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