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2022 (9) TMI 976 - Income Tax
Disallowance u/s. 14A r.w.r 8D - HELD THAT:- As in the instant case there is no exempt income earned by the assessee, the ld.AO was not justified in making disallowance u/s. 14A r.w.r. 8D. Therefore, set aside the finding of the ld. CIT(A) and delete the impugned addition made by the ld.AO u/s. 14A - Ground of assessee’s appeal is allowed.
TDS u/s 194A - Disallowance u/s. 40(a)(ia) - HELD THAT:- Assessee had incurred interest expenditure - It was liable to deduct tax at source u/s. 194A - The provisions of section 40(a)(ia) could have been attracted in the case of assessee if the amount of TDS has not been deducted and deposited before the due date of filing of return u/s. 139(1). On perusal of Tax Audit Report provided u/s. 44AB of the Act more specifically annexure 5 for Form 3CB and as stated by the tax of Rs. 3,158/- has been deducted at source on the alleged interest payment of Rs. 31,580/- and the assessee has deposited the amount of Rs.3,158/- on 20-04- 2006, which is much more before the due date of filing return u/s. 139(1). Under these facts and circumstances of the case the ld. AO erred in invoking the provisions of section 40(a)(ia) - therefore, set aside the impugned finding of the ld. CIT(A) and delete the disallowance u/s. 40(a)(ia).