TMI Blog2016 (2) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... ious year relevant to the assessment year. Hence, for limited purpose to verify the outstanding amount out of this impugned amount at the end of the close of the previous year relevant to the assessment year, we remit the issue back o the file of the ld. Assessing Officer. Further, we also make it clear that if the assessee paid the TDS before the returns filed u/s.139(1) of the Act, that expenses cannot be disallowed. The ld. Assessing Officer has to decide the issue after giving an opportunity to the assessee for producing necessary evidence. - Decided in favour of assessee for statistical purposes. - ITA Nos. 87 & 88 /Mds./2015 - - - Dated:- 20-1-2016 - Chandra Poojari, AM And G. Pavan Kumar, JM For the Appellant : Mr A V Sreekan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt assessment years. Aggrieved, the assessee preferred appeals before the Commissioner of Income Tax(Appeals). 4. On appeal, the Ld. Commissioner of Income Tax(Appeals) placed reliance on the decision of the Special Bench of the Tribunal in the case of Merilyn Shipping and Transports Vs. ACIT (2012) 136 ITD 23 (Visakhapatnam) and observed that the words 'paid' and 'payable', for the purpose of section 40(a)(ia) have been deliberated by various Tribunals and High Courts. The Special Bench of ITAT (Vizag Bench), in the case of Merilyn Shipping and Transporters vs. Addl.CIT (136 ITD 23)(Vizag SB) , has held that the provisions of section 40(a)(ia) are applicable only to the expenses that are payable and outstanding as on 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rts of Kolkata and Gujarat, in the cases of CIT Vs.Crescent Exports Syndicate (216 Taxman 258)(Kol.) and CIT vs. Sikandar Khan N. Tanvar (357 ITR 312)(Guj.) respectively, have held that the provisions of section 40(a)(ia) can be invoked even if the expenses are already paid and not outstanding as on 31st March of the relevant financial year. The Commissioner of Income Tax(Appeals) after analyzing the above decisions, jurisdictional Chennai bench of ITAT, recently, in the case of ITO vs. M/s. Theekathir Press Madurai (ITA No.2076(Mds)/2012 dated 18.9.2013), has held that the provisions of section 40(a)(ia) are applicable only when the expenses are payable and outstanding as on 31st March of the relevant financial year and also held that:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the amounts are payable and outstanding as on 31st March of the relevant financial years. The Commissioner of Income Tax (Appeals) observed that since the assessee has already paid the interest expenses of ₹ 3,75,25,075/- and ₹ 4,43,04,063/- as on 31.03.2010 and 31.03.2011 respectively, the same cannot be disallowed u/s.40(a)(ia) of the Act. Hence the Commissioner of Income Tax(Appeals) directed the Assessing Officer to allow these interest expenses of ₹ 3,75,25,075/- and ₹ 4,43,04,063/- as deductions in the A.Ys.2010-11 and 2011-12. Aggrieved of this, the Revenue is in appeal before us. 5. We have heard both the parties and perused the material on record. In these cases, the CIT(A) placed reliance on the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
