TMI Blog2018 (9) TMI 1695X X X X Extracts X X X X X X X X Extracts X X X X ..... appreciated by us. We are satisfied with the evidences as submitted before us and on the basis of such documents against which the payment were made, we delete the addition. - Decided in favour of assessee. TDS u/s 194A - interest on unsecured loan taken from one Mr.Pawan Kr. Patni and paid to one Shri R.P,Bajoria and others (HUF) on identified purposes - non deduction of tds - According to the assessee since the parties have filed their income tax return within the due period and paid necessary taxes thereon section 40(a)(ia) will not be applicable in this case - Held that:- Assessee has acted bona fide and there was no intention on its part to benefit the recipients of interest by way of not deducting tax from the interest so paid to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority but not furnished before the AO during the assessment proceedings. The second ground is against the order of disallowance u/s 40(a)(ia) on the appellant s claim for deduction of interest amount to the tune of ₹ 56,250/- and ₹ 43,858/- which were paid to two parties without deducting of tax at source. Ground No.1 3. The assessee has filed its return on 26.09.2013 declaring total income of ₹ 8,20,260/- which was processed u/s 143(1) of the Act. Subsequently upon scrutiny notices were issued u/s 143(2) and 142(1) of the Act. It appears that during the previous year under appeal the assessee purchased tyres and accessories costing of ₹ 15,000/- and ₹ 17,500/- respectively. However the claim of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us which was already placed before the ld. CIT(A). The bills and vouchers and relevant documents in support of the claim of the assessee which were though placed before the ld. CIT(A) but was not considered by him and confirmation of addition of ₹ 32,500/- on such account that no case has been made to admit those additional evidence and also on the ground that these evidences were not placed before the ld. AO cannot be appreciated by us. We are satisfied with the evidences as submitted before us and on the basis of such documents against which the payment were made, we delete the addition of ₹ 32,500/- as made by the authorities below. This ground of appeal is allowed. Ground No.2 6. During the previous year under app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord. We find substance in the arguments advanced by the ld. AR. According to the assessee since the parties have filed their income tax return within the due period and paid necessary taxes thereon section 40(a)(ia) of the Act will not be applicable in this case. The judgement relied upon in the case of Right Address Ltd vs ITO (TDS) Ward-59(4) is squarely applicable in the present facts and circumstances of the case. . The relevant thereof portion is as follows : If the TDS not deducted by the payer assessee on the interest payment made to the Lender- payee, the payee would not claim any refund from the revenue. In that case the question of payment of interest u/s 244A by the Revenue to the payee does not arise. The said payee is l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not deemed to be an assessee in default under the first proviso to subsection (1) of section 201, then, for the purpose of this sub-clause, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee referred to in the said proviso.] Explanation For the purposes of this sub-clause ( i) commission or brokerage shall have the same meaning as in clause (i) of the Explanation to section 194H; ( ii) fees for technical services shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9; ( iii) professional services shall have the same meaning as in clause (a) of the Explanation to se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the interest so paid to these two parties. It appears that no reason has been assigned by the ld. CIT(A) while declining to apply the judgment of Right Address Ltd. Vs ITO TDS Ward-59(4) in favour of the assessee. He thus failed to distinguish the judgment on fact and on law while disapplying the same. Taking into consideration of the case made out by the assessee, the judgments as well, we allow the ground of appeal preferred by the assessee by deleting the addition of ₹ 1,00,208/- as made by the authorities below. Since the original ITA No.1560/Kol/2018 is disposed off by us, the stay application being S.A.No.90/Kol/2018 is dismissed as infructuous. 12. In the result the appeal of the assessee is allowed. O rder pronounc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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