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2018 (5) TMI 805 - AT - Income TaxTDS u/s 194A - disallowance of interest u/s 40(a)(ia) for non deduction of tax at source - Held that:- The provisions of section 40(a)(ia) can be invoked to make a disallowance for non deduction of tax at source only while computing income under the head “profits and gains of business or profession”. Since the assessee during the year under consideration had no business income and the interest expenditure in question was claimed by him under the head ‘Income from other sources’, we find merit in the contention of the learned counsel for the assessee that the disallowance made by the A.O. and confirmed by the Ld. CIT(A) on account of interest by invoking section 40(a)(ia) is not sustainable. - Decided in favour of assessee Addition on account of interest on bank accounts - Held that:- This issue is accordingly restored to the file of the A.O. with the direction to verify the claim of the assessee that the amount of interest in question has already been brought to tax in the hands of M/s. Anand Vinayak Coalfield Ltd. and if it is found to be correct, the addition made in the hands of the assessee on account of same income is liable to be deleted as the same would otherwise result in double addition. Ground treated as allowed for statistical purposes Deemed dividend under section 2(22)(e) - Held that:- The nomenclature by the assessee alone cannot determine the exact nature of relevant transactions and it is required to be ascertained from the facts and record.T herefore, set aside the impugned order of the Ld. CIT(A) on this issue and restore the matter to the file of the A.O. for deciding the same afresh in the light of the decision of Tribunal in the case of Smt. Gayatri Chakraborty (2015 (11) TMI 1009 - ITAT KOLKATA) after verifying the exact nature of transactions from the relevant facats and record. Ground treated as allowed for statistical purposes.
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