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2016 (6) TMI 253 - AT - Income TaxTDS u/s.194C - Disallowance u/s.40(a)(ia) - Held that:- CIT(A) while deciding the issue in favour of assessee had relied on the decision of Special Bench in the case of Merilyn Shipping & Transports(supra) and held that if any amount is payable as on end of the relevant previous year, no deduction u/s.40(a)(ia) can be made. We further find that the ld.CIT(A) has not decide the issue on merits. It is also a fact that the decision of the Special Bench in the case of Merilyn Shipping & Transports (2012 (4) TMI 290 - ITAT VISAKHAPATNAM) that was relied upon by the ld.CIT(A) has been overruled by the Hon’ble Jurisdictional High Court in the case of CIT vs Sikhandarkhan N. Tunvar & Bros. reported at (2013 (5) TMI 457 - GUJARAT HIGH COURT), wherein the Hon’ble Jurisdictional High Court has held that the decision of the Special Bench of the Tribunal in the case of Merilyn Shipping & Transports does not laid down correct law. It has further held that section 40(a)(ia) of the Act would cover not only amounts which are payable as on 31st March of a particular year, but also which are payable at any time during the year. Before us, the ld. AR has not pointed out any contrary binding decision in his support. We further find that CIT(A) has not decided the issue on merits. In view of the aforesaid facts, we are of the view that the issue needs to be re-examined at the end of the ld.CIT(A) in the light of the judgment of the Hon’ble Jurisdictional High Court and in accordance with law and, accordingly, remit the issue back to the file of ld.CIT(A) to decide it afresh - Decided in favour of revenue for statistical purposes Addition an amount of notional interest income - Held that:- The issue in the present case is with reference to disallowance of interest. We find that CIT(A) after considering the submissions of assessee has granted substantial relief to the assessee and has confirmed the disallowance of interest only to the extent of ₹ 12,354/- as against the disallowance of ₹ 70,830/- made by AO. Before us, assessee has not brought any material to controvert the findings of CIT(A) and, therefore, we find no reason to interfere with the order of CIT(A). - Decided against revenue
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