Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 1549 - AT - Income TaxDisallowance U/s 40(a)(ia) - non deduction of tax at source on the interest paid to financial institutions and also not admitting the certificate issued by the Chartered Accountant in the case of M/s Religare Finvest Ltd. as per Rule 46A - amount payable or paid during the year - Held that:- The issue regarding payable has been decided by the Hon'ble Supreme Court in the case of M/s Palam Gas Services Vs CIT in Civil [2017 (5) TMI 242 - SUPREME COURT] as held that when the entire scheme of obligation to deduct the tax at source and paying it over to the Central Government is read holistically, it cannot be held that the word 'payable' occurring in Section 40(a)(ia) refers to only those cases where the amount is yet to be paid and does not cover the cases where the amount is actually paid.therefore, this pleading is dismissed. As far as retrospectivity of amendment in Section 40(a)(ia) of the Act is concerned, hold that it was a substantive change in law. Every substantive change in statute is prospective except where it is expressly made retrospectively. Thus only pleading of ld. A.R. that certificate submitted for M/s Religare Finvest Ltd. was not considered by the ld. CIT(A) is remains to be considered. In view of various decisions of the Courts, this plea is allowed. The certificate produced needs consideration. In the interest of justice and equity, this issue is restored back to the file of the Assessing Officer for verification. The certificate issued by the C.A. in the case of M/s Religare Finvest Ltd. shall be considered by A.O. and of found in order, relief shall be allowed. As regarding the difficulty in submitting certificate from Barclays Investment & Loan (India) Ltd. is concerned, it is of the view that the assessee shall be provided one more opportunity to submit the same. Therefore, this issue is also restored to the file of Assessing Officer. The ground is partly allowed for statistical purposes Disallowance of interest paid on the borrowed funds and also making the interest free advances to M/s Ravi Associates - Held that:- Issues needs a fresh look at the level of the Assessing Officer, therefore, in the interest of justice and equity, the issues raised in grounds No. 2 and 3 of the appeal are restored back to the file of the Assessing Officer to be decided de novo.
|