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2018 (9) TMI 146 - AT - Income TaxAddition u/s 40(a)(ia) with regard to interest paid on loan taken from three parties - applicability of second proviso to section 40(a)(ia) read with first proviso to section 201 - whether assessee comes within the purview of beneficiary provisions? - Held that:- Decision of the Hon'ble Delhi High Court in the case of CIT vs. Ansal Land Mark township (P) Ltd. [2015 (9) TMI 79 - DELHI HIGH COURT] and Pr. CIT vs. Manoj Kumar Singh [2018 (4) TMI 136 - ALLAHABAD HIGH COURT] are absolutely clear that in the realm of welfare legislation, which is main objective of the Income Tax Act beneficial provisions, which are beneficial to the assessee, shall have retrospective effect and these provisions shall have applicability from 2005 onwards. Therefore, in assessment year 2012-13 case of the assessee is covered within these provisions and it is deemed that assessee has deducted and paid tax on the amount paid as interest, since all the payees have paid taxes on such income. If there is tax effect and if the assessee has not complied with, at least the person to whom payment has been made should have paid the tax so that Revenue is protected from incurring any loss. Reading the second proviso to section 40(a)(ia) of the Act and first proviso to section 201 of the Act, it put forth certain conditions where the payee in his return of income has shown amount received from assessee and has paid tax thereon which is also certified by qualified Chartered Accountant, that signifies that there is no loss to the Revenue and in such circumstances second proviso to section 40(a)(ia) automatically comes into play and the assessee will be deemed to be an assessee who has deducted and paid tax. With these observations, we are of the considered view that additions made in the hands of the assessee is arbitrary, harsh, illegal and perverse - Decided in favour of assessee
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