2015 (12) TMI 1536

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....f by this consolidated order for the sake of convenience. However, reference is being made to the facts and issue in ITA No. 406/PN/2014 to adjudicate the issue. 3. The assessee in ITA No.406/PN/2014 has raised the following grounds of appeal:- 1) The learned CIT(A) erred on facts and in law in upholding addition of Rs. 6,21,123/- being interest paid to Chatrapati Sambhaji Maharaj Patasanstha Limited under section 40(a)(ia) of the Act. 2) The appellant craves leave to add, alter, delete or substitute all or any of the above grounds of appeal. 4. The issue raised in both the appeals under consideration is in relation to disallowance made under section 40(a)(ia) of the Act on account of interest paid to Chatrapati Sambhaji Maharaj Pat....

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....attracted. The CIT(A) however, dismissing both the pleas of the assessee, upheld the addition of Rs. 6,21,123/-, against which the assessee is in appeal. 7. The learned Authorized Representative for the assessee pointed out that Pune Bench of Tribunal have taken a consistency view that the provisions of section 40(a)(ia) of the Act were attracted to an expenditure to which provisions of tax deduction at source are applicable, irrespective of the fact whether the same is paid at any time during the previous year and was not payable at the close of year. The learned Authorized Representative for the assessee further pointed out that Pune Bench of Tribunal however, has further taken note of second proviso to section 40(a)(ia) of the Act, whic....

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....ard. 10. Now, coming to the second aspect of the issue i.e. new legal plea raised by the assessee in view of second proviso to section 40(a)(ia) of the Act, which was inserted by the Finance Act, 2012. The Tribunal in ACIT Vs. Bhavook Chandraprakash Tripathi (supra) while adjudicating similar issue had observed as under:- "4. Following the aforesaid precedent, we hereby reverse the decision of the CIT(A). However, at the time of hearing, the Ld. Representative for the respondent-assessee made a new legal argument that second proviso to section 40(a)(ia) of the Act was inserted by Finance Act, 2012 w.e.f. 01.04.2013, whereby it is provided that the disallowance u/s 40(a)(ia) of the Act would not be made if the assessee is not deemed to be....