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2018 (12) TMI 1383 - AT - Income TaxTDS u/s 194A - disallowance u/s 40(a)(ia) - non deduction of tds on interest paid - Held that:- Assessee has placed on record the copy of the CA Certificate (this Certificate was also produced before CIT(A)) wherein the CA has certified that the payee (Tata Capital Finance Services Ltd.,) has accounted for interest received from the assessee as its income and has paid the tax on such interest. In such a situation, no disallowance u/s 40(a)(ia) is called for in view of the decision of CIT Vs. Ansal Land Mark Township Pvt. Ltd. [2015 (9) TMI 79 - DELHI HIGH COURT] wherein it has held that insertion of second provisio to Sec.40(a)(ia) of the Act is declaratory and curative in nature and has retrospective effect from 01.04.2005. As long as payee or resident has filed its return of income disclosing the payment received by and in which the income embedded by it and has also paid taxes on such income, then no disallowance can be made u/s 40(a)(ia). Before us Revenue has not pointed out any contrary binding decision in its support - no disallowance u/s 40(a)(ia) of the Act is called for in the present case and thus, the ground of the assessee is allowed.
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