Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (12) TMI 1279 - AT - Income TaxDisallowance u/s 40(a)(ia) - no tax was deducted on the interest expenses - AR submits that one of the recipient i.e. India Bulls has shown interest expenses as their income and have offered the same for taxation as assessee has obtained certificate of Accountant and the provisions of section 201(1) of Income Tax Act, certifying that they have paid the tax on such interest income. Thus, the condition of second proviso of section 40(a)(ia) have been fulfilled - HELD THAT:- As the second provision the section is applicable and that no disallowance interest expenditure can be made in the hand of assessee and that various benches of Tribunal has taken a view that the second proviso is curative and declaratory in nature. The ld. AR of the assessee has also placed on record the certificate of Chartered Accountant under section 201(1) of the Act, certifying the facts that India Bulls (one of the recipients) has included the said interest income in their income and has paid tax thereon. We are in the agreement, the submission of assessee that in case the recipient (India Bulls) has included the interest paid by assessee, in their income and have paid tax therein, no disallowances can be made in the hand of assessee. Therefore, we direct the Assessing Officer to verify the fact and allow appropriate relief to the assessee in accordance with law. The assessee also directed to supervise necessary evidence to the Assessing Officer.
|