TMI Blog2016 (1) TMI 1347X X X X Extracts X X X X X X X X Extracts X X X X ..... tter back to the file of the Assessing Officer who shall consider the plea of the assessee based on the second proviso to section 40(a)(ia) of the Act inserted by the Finance Act w.e.f. 01.04.2013. Following the parity of reasoning, we deem it fit and proper to restore the matter back to the file of Assessing Officer, who shall consider the plea of the assessee based on the provisions of the Act inserted by the Finance Act, 2012 w.e.f. 01.04.2013 - Decided in favour of assessee for statistical purposes - ITA No.779/PN/2015 - - - Dated:- 15-1-2016 - MS. SUSHMA CHOWLA, JM AND SHRI PRADIP KUMAR KEDIA, AM Respondent by : Shri Vidya Sagar R. Patil ORDER PER PRADIP KUMAR KEDIA, AM : The present appeal preferred by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted to disallowance under section 40(a)(ia). 5. The Commissioner of Income tax (Appeals)-2, Nashik erred in confirming the disallowance under section 40(a)(ia) under pretext that the certificate cum confirmation for tax paid and accounting of interest on borrowing from the NBFC was in the name of other concern and not in name of assessee firm. 6. The assessment order dated 06.01.2015 is bad in law and needs to be kept aside. 7. The appealed craves to leave, add/amend or alter any of the above ground of appeal. 3. Before us, none appeared for the assessee. No adjournment application was moved either. It is seen from the records that the notices for hearing have been served on the assessee. Thus, it can be inferred that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lamandalam DBS Finance Ltd., after taking cognizance of certificate under section 197(1) of the Act enabling the assessee to make payment without deduction of income-tax. However, the CIT(A) confirmed the action of the Assessing Officer in respect of interest of ₹ 2,00,377/- relatable to another party namely M/s Indiabulls Financial Services Ltd. by following the CBDT Circular No.10 dated 16.12.2013. 7. Aggrieved by the order of the CIT(A), the assessee is in further appeal before us. 8. The limited issue that arises for our consideration is whether the Assessing Officer is justified in resorting to section 40(a)(ia) of the Act in respect of expenditure towards interest charges attributable to M/s Indiabulls Financial Services L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is that the said proviso should be understood as retrospective in nature as it has been introduced to eliminate unintended consequences which may cause undue hardships to the tax payers. It was pointed out that in similar circumstances, the Pune Bench of the Tribunal in the case of ITO vs. M/s Gaurimal Mahajan Sons vide ITA No.1852/PN/2012 dated 06.01.2014 following the decision of the Cochin Bench of the Tribunal in the case of Antony D. Mundackal vs. ACIT vide ITA No.38/Coch/2013 dated 29.11 .2013 has restored the matter back to the file of the Assessing Officer. In the precedent dated 06.01.2014 (supra), the Tribunal noted that such a plea was raised for the first time before the Tribunal and the correctness or otherwise of the conte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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