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2022 (2) TMI 1193 - AT - Income TaxAddition u/s 40(a)(ia) - assessee had failed to deduct tax at source on the interest/finance charges that was paid/credited by it to M/s Magna Fincorp Limited - default u/s 201(1) - HELD THAT:- We find that the aforementioned payee, viz. M/s Magna Fincorp Limited (supra) had duly accounted for the aforesaid interest/finance charges received from the assessee in its return of income for the year under consideration and had paid the corresponding taxes on the same. The aforesaid factual position can safely be gathered from the certificate of the Chartered Accountant, dated 19.12.2014(supra) that has been filed by the assessee before us In our considered view, now when the aforesaid payee, viz. M/s Magna Fincorp Limited(supra) had duly accounted for the interest/finances charges in its return of income and had paid the corresponding taxes, therefore, as per the “2nd proviso” to Sec.40(a)(ia) of the Act the aforementioned amount could not have been brought within the realm of the disallowance contemplated under the said statutory provision. Apart from that, as stated by the Ld. AR, and rightly so, we find that the Hon'ble Supreme Court in the case of M/s. Hindustan Coca Cola Beverages Pvt. Ltd. [2007 (8) TMI 12 - SUPREME COURT] had observed, that in case the payee of the amount in question had paid the taxes on the same, then, the payer cannot be held as an “assessee-in-default” as regards the said amount for the purpose of enforcing the recovery of the corresponding tax liability u/s. 201(1) - Decided in favour of assessee.
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