TMI Blog2014 (12) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... ising from non-performance or non-observance of the stipulation of the main contract - the payment to M/s. Unitech Limited was interest only because it had been debited as such in the books of account of M/s. Unitech Limited. No efforts whatsoever had been made by the AO to prove that the details filed by M/s. Unitech Limited or that the certificate that the payments made by the assessee were not interest, is wrong - the assessee had no control whatsoever over the books of account for the accounting entries passed by M/s. Unitech Limited in its books of account and in the light of the memorandum of understanding between the assessee and M/s. Unitech Limited, which did not provide for levy of any interest, the amount was not in the nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sequent certificate filed by assessee from Unitech Ltd was not supported by any evidence? 2. The assessment year is 2005-06 and the relevant accounting period is the financial year 200405. In the original assessment proceedings, the Assessing Officer passed an order under section 143 (3) of the Act and made an addition of ₹ 77,67,754/- under section 40 (a)(ia) of the Act on account of non deduction of TDS on interest payment made to M/s. Unitech Limited on the ground that from the record, it had been noticed that during the period under consideration, the assessee was a subcontractor of M/s. Unitech [the principal contractor] for Kodadara-Saijpura road and the payment was made to M/s. Unitech without deduction of TDS. The Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the assessee was liable to deduct TDS under section 194C of the Act and accordingly, the amount was liable to be disallowed under section 140 (a)(ia) of the Act. It was further submitted that the assessee had itself shown that the payment had been made on account of interest and even if it is assumed that the payment was not made on account of interest, even then, the assessee was required to deduct the tax since payment was made on account of contractual liability. 5. As can be seen from the order passed by the Commissioner (Appeals), he, after appreciating the evidence on record has found that pursuant to the directions issued by the Tribunal, the Assessing Officer had issued notices to the assessee who had stated that they had ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r (Appeals), the Assessing Officer instead of examining the contents of the documents filed by M/s. Unitech Limited has brushed the same aside and held that the payment to M/s. Unitech Limited was interest only because it had been debited as such in the books of account of M/s. Unitech Limited. He further found that no efforts whatsoever had been made by the Assessing Officer to prove that the details filed by M/s. Unitech Limited or that the certificate that the payments made by the assessee were not interest, is wrong. The Commissioner (Appeals) was of the view that the assessee had no control whatsoever over the books of account for the accounting entries passed by M/s. Unitech Limited in its books of account and in the light of the memo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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