TMI Blog2017 (5) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... GUJARAT HIGH COURT] in which it was held that “provisions u/s 40(a)(ia) would cover amount payable at any time during the accounting year”. The issue is also decided against the assessee by judgment of Hon’ble P & H High Court in the case of P.M.S.Diesels [2015 (5) TMI 617 - PUNJAB & HARYANA HIGH COURT] in which on the same principle, the appeal of the assessee has been dismissed. No infirmity has been pointed out in the order of the Ld.CIT(A), therefore, the appeal of the assessee has no merit, the same is accordingly dismissed. - I.T.A. No. 3732/Del/2016 - - - Dated:- 20-4-2017 - Sh. Bhavnesh Saini, Judicial Member Assessee by : Sh.Y.K.Aiyar, CA Revenue by : Ms. Bedobani Chaudhari, Sr.DR ORDER Per Bhavnesh Saini, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The AO called for information u/s 133(6) of the Act from M/s Religare Finvest Ltd. and noted that loan was granted to the assessee company and repayment of the loan amount and interest was paid through the account of the assessee company. The entire funds have been used by the assessee for the business. The asset pledged is owned by the assessee. The reply of the assessee was not found satisfactory and the AO disallowed the interest paid of ₹ 15,85,380/- to Religare Finvest Ltd. u/s 40(a)(ia) of the Act and made the addition. 4. The assessee in his submissions before the Ld.CIT(A) submitted that disallowance under the above provisions will only be made against sum payable at the end of the F.Y. Entire interest was paid by 31st Marc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Victoria Shipping services Pvt. Ltd. v. CIT reported in 357 ITR dated 06.07.2014 where the Hon'ble High Court has held that disallowance is only if any sum remains payable at the end of accounting year and not if sum has been paid. Hon'ble Supreme Court had dismissed SLP of the department. 2.2.2. After considering the above fact I find that the Hon'ble Supreme Court has decided the issue inlimany, without giving any reasons, and therefore, the dismissal did not confirm the view of the Hon'ble Allahabad High Court. In this regard the Hon'ble Calcutta High Court has held in the case of Ruby Traders exporters Limited reported in 263 ITR 300. On this issue the Hon'ble Calcutta High court has held that having re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied the decision of Hon'ble Allahabad High Court which is in its favour but'two High Court decisions are in favour of revenue on the issue. So, it is very clear the appellant has violated the provision of section 40(a)(ia) by not deducting the tax on interest payment. In the above circumstances and in view of the decisions of Hon'ble Gujarat High Court and in view of the decision of Hon'ble calcutta High Court, the addition made by the AO is hereby confirm. Hence the grounds of appeal are dismissed. 3. In the result the appeal is dismissed. 5. I have heard Ld. representatives of both the parties. The appeal is time barred by 6 days. The assessee explained in the application for condonation of delay that the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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