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2022 (4) TMI 290 - AT - Income TaxRevision u/s 263 by CIT - case was selected for scrutiny and notice u/s 143(2) was issued to the assessee - Non deduction of TDS - disallowance of interest paid u/s 40(a)(ia) - Claim of deduction u/s 54EC - HELD THAT:- We find that since the assessee failed to deduct tax, the A.O was required to make disallowance of interest u/s 40(a)(ia) of the Act on account of non-deduction of TDS. A.O also did not notice that STDR with SBI is not a long term specified asset within the meaning of sec. 54EC of the Act and allowed the claim of the assessee without going through the facts. Therefore, the order passed by the A.O is erroneous and prejudicial to the interest of revenue. See SESA STARLITE LIMITED, ERSTWHILE SESA GOA LTD. [2020 (11) TMI 102 - BOMBAY HIGH COURT] and M/S BALLARPUR INDUSTRIES LIMITED [2017 (8) TMI 530 - BOMBAY HIGH COURT] We are of the view that the order passed by the ld. Pr. CITM u/s 263 of the Act is proper and valid and does not call for any interference at our hands. We therefore, hold that the ld. Pr. CIT was right in invoking his jurisdiction u/s 263 of the Act and directing the A.O to make disallowance of interest u/s 40(a)(ia) of the Act on account of non-deduction of TDS and also in directing the Assessing Officer to make disallowance of the claim of deduction u/s 54EC of the Act with respect to such STDR with SBI. - Decided against assessee.
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