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2018 (12) TMI 1131 - AT - Income TaxTDS u/s 194A - non deduction of tds on interest payment to various NBFCs - Held that:- It is abundantly clear that equipment loans had been availed by the assessee from four finance Companies namely M/s Tata Capital and Finance Services Ltd., M/s L & T Finance, M/s SREI Equipment & Finance Pvt. Ltd and M/s Sreeram Equipment Finance Co. Ltd. We note that on all such loans, monthly deduction of principal and proportionate interest had been paid by the assessee and claimed in the accounts as finance charges. The total interest debited during the year amounted to ₹ 4,41,12,661/- without any deduction of TDS. However, out of the four finance Companies, two Companies namely M/s L & T Finance and M/s SREI Equipment and Finance Pvt. Ltd. had issued confirmation to payer Company that they have duly included the same in their income. For the other two Companies, Chartered Accountant's certificates confirming that the interest so received have all been duly credited to their income, were also received by the payer company. Therefore, in view of the insertion of second proviso of section 40(a)(ia) and proviso of section 201(1) which are curative and retrospective in nature, the addition made by the AO should be deleted. - Decided against revenue.
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