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2018 (11) TMI 639 - AT - Income TaxDisallowance of interest expenses - disallowance u/s 37(1) as well as by invoking the provisions of section 40(a)(ia) for non-deduction of tax - Held that:- Assessee is a limited company engaged in the business to act as financial consultant and broker for generating and mobilizing FDs for other companies and corporate loans and that of trading in shares. Interest is provided in the accounts on the basis of order of Special Court. As per order of Special Court the assessee was required to make full payment of interest and in case there is TDS deducted on the same, there would have been violation of court order. Similar issue has arisen one of the group companies of the assessee i.e. Sam Leasco Ltd. wherein Hon’ble Special Court has specifically directed not to deduct TDS. The interest is on account of directions of Special Court and hence, there is no requirement of TDS. Accordingly, find no infirmity in the order of CIT(A) and hence, the same is confirmed. This issue of Revenue’s appeal is dismissed.
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