TMI Blog2022 (5) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... th the provisions of Chapter XVII B on any such sum but is not deemed to be an assessee in default under the first proviso to section 201(1) of the Act, 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 payee. Assessee though has taken the plea on the basis of second proviso to section 40(i)(ia) of the Act and has also furnished certificates in Form no.26A in respect of two NBFCs, however, no relief was granted by the learned CIT(A) and disallowance made by the Assessing Officer was upheld. Now in the present appeal, the assessee by way of additional evidences has produced copies of Form no.26A in respect of all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Case in confirming the action of the Ld. Assessing Officer in disallowing an amount of Rs.10,15,337/- U/s. 40(a)(ia) of the Income Tax Act, 1961 for the Interest Paid to Non-banking Finance Company (NBFCs) without deduction of TDS. 2. On the Facts and Circumstances of the Case and under the Provisions of the Law the Ld. Assessing Officer erred in making the additions U/s. 40(a)(ia) for the Interest paid of Rs. 10,15,337/- to NBFCs, where the Second Proviso to Section 40(a)(ia) is complied by the NBFCs by filing the Return of Income, declaring such Interest and paying Tax thereon. The Ld. Commissioner of Income Tax (Appeals)-15, Mumbai, erred in Law not taking the Cognizance of the Certificate in Annexure - A by Accountant under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rders. Accordingly, the assessee prayed for condonation of delay in filing the present appeal. 4. We further find that the Hon'ble Supreme Court vide order dated 10.01.2022, in M.A. no.21 of 2022, in M.A. no.665 of 2021, in Suo Motu Writ Petition (Civil) no.3 of 2020, directed that the period from 15.03.2020 till 28.02.2022, shall stand excluded for the purposes of limitation as may be prescribed under any general or special laws in respect of all judicial and quasi judicial proceedings. In view of the above, there is no delay in filing the present appeal and we hear the appeal on merits. 5. The only issue arising in the present appeal is with regard to the disallowance under section 40(a)(ia) of the Act on account of interest pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, the learned CIT(A) vide impugned order dated 25.02.2020, inter alia, upheld the disallowance under section 40(a)(ia) for non deduction of TDS on interest paid to NBFCs. The learned CIT(A) further held that the income offered by the NBFCs in their return of income has no bearing on the requirement laid down by the Act on the assessee to deduct TDS. Being aggrieved, the assessee is in appeal before us. 8. During the course of hearing, Shri Prakash Jani, the learned Authorised Representative for the assessee ( learned A.R. ) submitted that the assessee vide application dated 02.03.2022 has sought admission of additional evidences, which were received only after completion of appellate proceedings before the learned CIT(A) and have bear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the tax in accordance with the provisions of Chapter XVII B on any such sum but is not deemed to be an assessee in default under the first proviso to section 201(1) of the Act, 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 payee. 11. From the facts available on record, it is evident that the assessee though has taken the plea on the basis of second proviso to section 40(i)(ia) of the Act and has also furnished certificates in Form no.26A in respect of two NBFCs, however, no relief was granted by the learned CIT(A) and disallowance made by the Assessing Officer was upheld. Now in the present appeal, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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