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2021 (2) TMI 1080 - AT - Income TaxDisallowance u/s. 40(a)(ia) - interest paid by the assessee to Indiabulls - HELD THAT:- We find that Hon'ble Delhi High Court in the case of CIT vs. Ansal Land Mark Township (P) Ltd. [2015 (9) TMI 79 - DELHI HIGH COURT] has held that the second proviso to Section 40 (a) (ia) of the Act is declaratory and curative in nature and should be given retrospective effect from 1st April 2005. As long as the respective payee/resident has filed its return of income disclosing the payment received by and in which the income earned by it is embedded and has also paid tax on such income, then no disallowance can be made u/s. 40(a)(ia). We find that the assessee had made the submissions to the effect that the interest paid by the assessee to Indiabulls and Reliance have been included by the respective payees in their respective income, but there is no finding of the lower authorities on the aforesaid contention. We are therefore of the view that the issue needs re-examination by the AO in the light of the aforesaid decision rendered by Hon'ble Delhi High Court. We therefore, restore the issue back to the file of the AO to decide the issue afresh .
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