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2017 (5) TMI 909 - AT - Income TaxTDS u/s 195 - disallowance for want of non deduction of tax at source on interest payments to M/s. Reliance Capital Limited - Held that:- assessee has filed a certificate dated 09.01.2017 from Chartered Accountants as prescribed in first proviso to Sec. 201(1) of the Act. This certificate says that M/s. Reliance Capital Limited had taken into account interest paid by the assessee for computing their taxable income. In my opinion first proviso to Sec. 201(1) of the Act did not prescribe therein any specific time limit for furnishing such a certificate. It may be true that assessee had not produced this certificate before lower authorities. However, if payee had taken into account the interest paid by the assessee while computing their taxable income and had filed their return, then in my opinion assessee cannot be visited with rigours of Sec. 40(a)(ia) of the Act, by virtue of first proviso therein. Accordingly question regarding liability of the assessee to deduct tax on the interest payments made to M/s. Reliance Capital Ltd, requires a revisit by ld. Assessing Officer. - Decided in favour of assessee for statistical purpose. Non TDS on commission payment to the non-resident marketeer - addition u/s.40(a)(i) - Held that:- Assessee was not obliged to deduct tax at source on the commission paid by it to the non-resident marketeer. Question of getting a certificate from the Assessing Officer under Section 195(2) of the Act will be applicable only where the assessee considers only a part of the payment as liable for deduction of tax at source and not the whole. Disallowance of A10,35,967/- made u/s.40(a)(i) of the Act stands deleted. See CIT Versus M/s. Farida Leather Company [2016 (2) TMI 798 - MADRAS HIGH COURT] - Decided in favour of assessee.
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