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2023 (8) TMI 868 - AT - Income TaxInterest paid u/s 201(1A) claimed as deduction while computing the profits and gains - HELD THAT:- The Bangalore Bench of the Tribunal in assessee’s own case [2022 (8) TMI 349 - ITAT BANGALORE] had categorically held after relying various judicial pronouncements that interest u/s 201(1A) of the I.T. Act cannot be claimed as a deduction. We hold that interest paid by the assessee u/s 201(1A) cannot be allowed as a deduction while computing the profits and gains of the assessee. A.O. had made an addition by stating that the said amount is the interest paid u/s 201(1A) claimed as deduction u/s 37 - According to the AR, the disallowance can be limited to the TDS - In this context, the learned AR had submitted that the assessee has filed a rectification application before the A.O. and the same is pending - The above contention of the learned AR needs to be examined by the A.O. For the limited purpose of examining the figures for disallowance, the issue is restored to the files of the A.O. The A.O. is directed to examine the correct figure of interest paid u/s 201(1A) of the I.T. Act that is claimed as a deduction. Appeal filed by the assessee is partly allowed for statistical purposes.
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