2015 (1) TMI 47

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....n of TDS on interest paid to Tata Capital Ltd. of Rs. 16,94,743/- and to Tata Motor Finance Ltd. Rs. 1,08,150/-. As the assessee has admitted that TDS which was required to be deducted on payment of interest as per the Act, has not been deducted and paid due to inadvertent mistake, the AO made the addition. The assessee challenged the addition before the ld. CIT(A) and written submissions of the assessee are reproduced in the appellate order. The sole contention of the assessee was that the disallowance under the above provision can be made in respect of the expenditure payable at the end of the year and not on the amounts already paid without deducting tax. The assessee relied upon the decision of Special Bench of ITAT, Vishakhapatnam Benc....

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....f its principle remained in favour of the assessee. Since the decision of Special Bench above has admittedly been stayed by the Hon'ble High Court, therefore, the same cannot be applied in any form in favour of the assessee as on today. The appeal of the assessee has, thus, no merit and is accordingly dismissed." 4. The above facts and submissions of the ld. counsel for the assessee would clearly reveal that the ld. counsel for the assessee has only raised the point that even if the decision of Special Bench had been stayed by Andhra Pradesh High Court, but the principle is still in favour of the assessee. Such a contention of the assessee was not accepted and the appeal of the assessee was dismissed. 5. On the last date of hearing, the l....

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....) and shall make such amendment. The order of the Tribunal dated 19.07.2013 is quoted above. It would clarify that the assessee admitted before the AO that TDS has to be deducted on payment of interest and the assessee admitted applicability of provisions of section 40(a)(ia) of the IT Act in the matter. The ld. counsel for the assessee only submitted during the course of arguments that even if the decision of special bench has been stayed by Andhra Pradesh High Court but the principle still in favour of the assessee. The submissions of the assessee was not accepted because when the decision of Special Bench has been stayed by the jurisdictional High Court, the same could not be applied in favour of the assessee on the day of passing of the....