Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (1) TMI 1187 - AT - Income TaxDisallowance of interest - non deduction of tds - Held that:- Section 40(a) (ia) covers not only the amount which are payable as on 31st March but also amounts payable at any time during the year. As an alternative plea, the appellant has submitted that under the provisions of section 194A, payment to a company carrying on the business of insurance is out of ambit of the provisions for deduction of tax as as perused that extract of the website as quoted by the appellant in the written submission. It is seen that as per the information given in the website Reliance Capital has interest in life and general insurance but that does not mean that it is indeed engaged in the business of insurance. As the appellant has failed to provide clear evidence to support its claim that Reliance Capital is involved in Insurance business, this argument of the appellant is not acceptable. AO has rightly invoked the provisions of section 40 (a) (ia) Disallowance of freight - Held that:- Though the AO has mentioned about the provisions of section 40(a)(i) but that is apparently a typographical error and he actually meant that the expenses are disallowable in view of provisions of section 40(a) (ia). In my opinion, inadvertent reference to wrong provisions would not make the disallowance bad in law as long as there is another provision which is actually applicable in the given facts. The appellant has not denied that tax was deductible on the payments made to the two companies u/s 194A. It has also not been denied that the tax was not deducted from such payments. When the tax was deductible and the same has not been deducted, it is obvious that in view of provisions of section 40(a)(ia), such expenses cannot be allowed. - Decided against assessee
|