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2021 (12) TMI 642 - ITAT MUMBAIRectification of mistake u/s 154 - Addition u/s 36(1)(iii) towards interest on loans to subsidiary - HELD THAT:- We note that there were transfer of funds from both sides i.e. from the assessee to the subsidiary and from the subsidiary to the assessee however at the financial year end, net payable to the assessee was ₹ 1,36,23,329/-.We have also examined the overall calculation of interest and find that if the cross transactions are taken into consideration for the whole year, then instead of interest receivable, there comes out to be interest payable by the assessee. So certainly the rectification application moved by the assessee was maintainable which was summarily rejected by the AO and so by the ld CIT(A). Therefore considering the facts of the case we are unable to agree to the conclusion drawn by the ld CIT(A) on this issue. Accordingly we set aside the order of ld CIT(A) direct the AO to delete the disallowance of Interest - The appeal of the assessee is allowed. Rectification application qua allowing the credit of TDS - Assessee has returned the income received from M/S M/S Tamilnadu Petroproducts Ltd on which TDS of ₹ 10,04,793/- was deducted and similarly income received from Karvy Stock Broking Ltd as also returned on which TDS of ₹ 55,150/- was deducted by Karvy Stock Broking Ltd. However the deductors deposited the TDS in the nest year and thus it was appearing in the form 26AS of AY 2012-13. In our opinion the assessee should be allowed the benefit of TDS in the current year in which income is offered to tax irrespective of the year in which it was deposited by the deductor. Even this treatment is in accordance with the provisions of section 199 of the Act. Accordingly the we direct the AO to allow the credit of TDS of ₹ 10,59,943/- in the current year. Appeal of assessee allowed.
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