TMI Blog2018 (9) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... icial to the assessee, shall have retrospective effect and these provisions shall have applicability from 2005 onwards. Therefore, in assessment year 2012-13 case of the assessee is covered within these provisions and it is deemed that assessee has deducted and paid tax on the amount paid as interest, since all the payees have paid taxes on such income. If there is tax effect and if the assessee has not complied with, at least the person to whom payment has been made should have paid the tax so that Revenue is protected from incurring any loss. Reading the second proviso to section 40(a)(ia) of the Act and first proviso to section 201 of the Act, it put forth certain conditions where the payee in his return of income has shown amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Ld. CIT(A) was not at all justified in confirming the addition of ₹ 5,55,294/- made by the Ld. A.O. and hence addition so made deserves to be deleted. 3. The Ld. A.O. erred on facts and in law in not providing the appellant the proper adequate or sufficient opportunity to have it say or make necessary compliance of the reasons relied upon by him making addition. 4. The appellant reserves its right to advance such other grounds before or at the hearing, which it may consider fit and appropriate, for which it craves leave to amend, alter or otherwise modify the grounds appearing hereinbefore with the kind permission of the CIT (A). 2. The crux of the grievance in the grounds of appeal by the assessee is against co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by second proviso to section 40(a)(ia) read with first proviso to section 201 of the Act. Ld. A.R. of the assessee, in order to demonstrate the applicability of these provisions through documentary evidence filed before the subordinate authorities, stated that copy of relevant ITRs of each of the three payees along with form No.26A i.e. Certificate of Chartered Accountant have already been filed before the Revenue authorities. Similarly, ld. A.R. of the assessee placed reliance upon the decision of the Hon'ble Delhi High Court in the case of CIT vs. Ansal Land Mark township (P) Ltd. [2015] 377 ITR 635 (Delhi) and Hon'ble Allahabad High Court in the case of Pr. CIT vs. Manoj Kumar Singh [2018] 402 ITR 238 (Alld). On the basis of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. Therefore, section 40(a)(ia) of the Act is a provision where additions can be made by the Revenue on certain conditions as specified therein and second proviso to section 40(a)(ia) of the Act provides benefit to the assessee stating that if he has fulfilled the conditions of the first proviso to section 201 of the Act, then the rigours or chargeability of section 40(a)(ia) of the Act will not be applicable to the assessee. First proviso to section 201 of the Act provides under what circumstances assessee will not be deemed to be an assessee in default. Conditions are that person to whom amounts have been paid, that payee should have furnished his return of income under section 139 of the Act and in that return of income payee should h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 201 of the Act and whether assessee comes within the purview of beneficiary provisions. We have examined that whatever requirements provided in the first proviso to section 201 of the Act, that has been complied with by the assessee and details have been furnished before the Revenue and once this has done automatically assessee is covered within second proviso to section 40(a)(ia) of the Act. Regarding applicability of these provisions in the case of the assessee for assessment year 2012-13, decision of the Hon'ble Delhi High Court in the case of CIT vs. Ansal Land Mark township (P) Ltd. (supra) and the decision of Hon'ble jurisdictional High Court in the case of Pr. CIT vs. Manoj Kumar Singh (supra) are absolutely clear that in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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