Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

PR. CIT-06 Versus M. Sons Gems N Jewellery Pvt. Ltd. (Formerly: M Sons Enterprises Pvt. Ltd.) C/o SSAR & Associates

2016 (4) TMI 1132 - DELHI HIGH COURT

TDS u/s 194A - Non deduction of tds - factoring/discounting charges - disallowance under Section 40(a) (ia) - Held that:- No factual basis for the AO to have disbelieved the Assessee's explanation and simply treat the entire amount as interest. The question of disallowing the entire amount under Section 40(a) (ia) on the ground that the TDS was not deducted in terms of Section 194A of the Act did not arise.

The Court is unable to find any legal infirmity in the view expressed by the I .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essment Year ( AY ) 2009-10. 2. The question sought to be urged by the Revenue is whether the ITAT was justified in holding that the sum of ₹ 93,68,870 debited to the Profit & Loss ( P&L ) account towards factoring/discounting charges ought not have been disallowed by the Assessing Officer ( AO ) under Section 40(a) (ia) of the Income Tax Act, 1961 ('Act'). 3. The Assessee is a private limited company engaged in the business of manufacturing and trading in gold, diamond jew .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

harges as it was not an interest amount. 4. In the assessment proceedings, the AO examined the agreement entered into between the GTFL and the Assessee. The AO disbelieved the Assessee s contention that the aforementioned amount constituted factoring charges. According to the AO as per the agreement, GTFL would advance a loan to the Assessee on which the Assessee was liable to pay interest @13%. This was separate from the factoring charges. The AO proceeded to treat the entire amount of ₹ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Court in ITA No. 74 of 2014 (CIT v. M/s MKJ Enterprises Ltd.) to the effect that the factoring charges on sales cannot be termed as interest. The ITAT also noted the submission of the Assessee that this Court in CIT v. Cargill Global Trading (P) Ltd. 335 ITR 94 (Del.) also held likewise. 6. Mr. Kapil Goel, learned counsel for the Assessee, points out that the Revenue's Special Leave Petition against the judgment of this Court in Cargill Global Trading (supra) was dismissed by the Supreme Cou .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version