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TMI Blog2020 (9) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year (AY) 2014-15 on 31.03.2015 declaring income of Rs. 26,84,400/- and agricultural income of Rs. 9,03,306/-. Assessment u/s 143(3) was completed by the Assessing Officer (AO) on 30.10.2016 determining the income at Rs. 27,14,237/-. The Pr. CIT, on perusal of records observed that the assessee has received unsecured loan of Rs. 6,56,48,896/- from various parties and paid interest thereon of Rs. 1,44,59,214/-, whereas no details of tax deducted at source (TDS) on such interest expenses u/s 194A r.w.s. 40(a)(i) are shown in the audit report. In response to the show-cause notice issued u/s 263 of the Act, the assessee filed a reply dated 22.03.2019. However, the Pr. CIT was not convinced with the said reply for the reason that prima faci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant materials on record. The reasons for our decisions are given below. As per the capital account as at 31.03.2014, the appellant has earned total receipts of Rs. 1,03,59,083/- (Rs. 2,46,40,357/- minus opening balance of Rs. 1,42,81,274/-). It consists of remuneration (Rs. 14,71,942/-), interest on capital(Rs. 11,18,263/-), agricultural income (Rs. 9,03,306/-), bank interest (Rs. 9,654/-) , dividend (Rs. 1,703/-) share of profit (Rs. 8,05,577/-), dividend bank (Rs. 60,000/-), interest income (Rs. 54,32,777/-) and other income (Rs. 5,55,860/-). The provisions of section 194A were amended from June 1, 2002 to provide that an individual or a Hindu Divided Family, whose total sales, turnover or gross receipts from the business or pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii. Income by way of interest unless assessable as business income; iii. Share of profit of a partner of a firm in the total income of the firm excluded from his total income u/s 10(2A) of the Income Tax Act. Once, the above items which appear in the capital account of the appellant are excluded, then the gross receipts from business carried on by it shall not exceed the monetary limits specified u/s 44AB during the financial year 2013-14 relevant to the assessment year 2014-15. As a consequence, the appellant would not be liable to deduct tax u/s 194A of the Act. In view of the above factual scenario and position of law, we set aside the order u/s 263 passed by the Pr. CIT. 5. In the result, the appeal filed by the assessee is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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