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2018 (9) TMI 1757 - AT - Income TaxTDS u/s 194A - disallowance u/s 40(a)(ia) - non deduction TDS on interest payment - Held that:- The assessee had paid the interest to the tune of ₹ 41,35,478/- to M/s PIPDIC without deduction of tax at source. The said entity, PIPDIC is not a statutory corporation u/s 194A(iii)(b) and not a notified institution u/s 194A(iii)(f) of the Act. Therefore, the payment of interest to PIPDIC required to be deducted u/s 194A. Since the assessee has not deducted the tax at source and remitted to Government account, the payment of interest attracts disallowance u/s 40(a)(ia) of the Act. The issue is settled by Hon’ble Supreme Court in the case of Palam Gas Service [2017 (5) TMI 242 - SUPREME COURT] and held that Word 'payable' occurring in section 40(a)(ia) not only covers cases where amount is yet to be paid but also those cases where amount has actually been paid. Therefore, we hold that the Ld.CIT(A) has rightly confirmed the addition - decided against assessee
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