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2022 (4) TMI 897 - ITAT NAGPURAddition u/s.40(a)(ia) - assessee had paid interest to M/s. Tata Motors Finance Ltd. without deducting tax at source - HELD THAT:- Fact borne from the record that the assessee had failed to deduct tax at source on the amount of interest that was paid by it to M/s. Tata Motors Finance Ltd.- as the aforesaid payee, viz. Tata Motors Finance Ltd. had duly taken into account the aforementioned amount of interest while computing its income for the year under consideration and had paid the corresponding taxes on the same, as is evidenced from the certificate of the Chartered Accountant in Form 26A, dated 03.05.2017 filed by the assessee before us, therefore, we are of the considered view, that as stated by the Ld. AR, and rightly so, the assessee could not be held as an assessee-in-default as regards the aforementioned amount under Section 201(1) of the Act. Accordingly, now when the assessee could not be held as an assessee-in-default u/s. 201(1) of the Act, therefore, we concur with the claim of the Ld. AR that as per the "2nd proviso" to Section 40(a)(ia) of the Act, the aforementioned amount could not have been disallowed in the hands of the assessee company. Backed by our aforesaid deliberations, we, herein, set-aside the order of the CIT(Appeals) and direct the Assessing Officer to vacate the disallowance - Appeal of assessee allowed.
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