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2018 (10) TMI 1225 - AT - Income TaxTDS u/s 194A - payment of interest to NBFC - addition u/s 40(a)(ia) - IT is claimed that NBFC has included interest into its income - admission of additional evidence - CA certificate filed by the assessee not admitted by the CIT(A) - Held that:- CIT(A) before whom the certificate was filed for the first time rejected the same at threshold without admitting the same on the grounds that it was obtained post filing of return of income and also post assessment farmed by the AO. CIT(A) was also of the view that second proviso to Section 40(a)(ia) of the 1961 Act as introduced by Finance Act, 2012 w.e.f 01-04-2013 cannot be given retrospective effect. In the case of Ansal Land Mark Township Private Limited [2015 (9) TMI 79 - DELHI HIGH COURT] had held that insertion of second proviso to Section 40(a)(ia) of the 1961 Act is to be given retrospective effect wef 01-04-2005. CA certificate filed by the assessee is a material evidence for adjudicating this issue and we admit the said additional evidence filed by the assessee in the interest of justice. Contents of the said CA certificate was not verified by any of the authorities below and hence in the interest of justice and in fairness to both the parties, we are restoring the matter back to the file of the AO for necessary verification of the said CA certificate and thereafter if the contents of the CA certificate are proved to be correct , the AO is directed to grant relief to the assessee keeping in view second proviso to Section 40(a)(ia). Disallowance of delayed pay-in-charges to share brokers for making delayed payments against share purchased by the assessee - non deduction of TDS - Held that:- Assessee cannot be accepted and the delayed pay-in-charges payable by the assessee to sharebroker for making delayed payment of purchase consideration for purchase of shares is infact "interest" within meaning of Section 2(28A) of the 1961 Act and the assessee was required to deduct income-tax at source on such interest of ₹ 4,21,773/- within the provisions of Section 194A. Since, the assessee fails to deduct income-tax at source on this payment the assessee will be hit by provisions of Section 40(a)(ia) of the 1961 Act and the disallowance as was done by the AO and as confirmed by learned CIT(A) is upheld. The assessee fails on this issue.
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