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2017 (1) TMI 991 - AT - Income TaxTDS u/s 194A - disallowance u/s 40(a)(ia) - assessee failed to deduct tax at source on the amount of interest paid - Held that:- Once, the interest income in the preceding year was shown in the return of income as “Income from other sources” and accepted as such by the AO, then, in the present year the same cannot be re-characterised in the assessment order of the present year merely for the purpose of applying provisions of section 194A. Such kind of superfluous exercise is not permitted under the law. Thus, as per law and facts of this case, the case of the assessee is not covered u/s 194A as the mandatory condition of there being turnover exceeding a sum of ₹ 40 lakhs is apparently missing in this case. Thus, assessee was not obliged to deduct TDS u/s 194A. Thus, the AO as well as the Ld. CIT(A) have erred in making disallowance u/s 40(a)(ia). - Decided in favour of assessee
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