TaxTMI 
TaxTMI 
2017 (5) TMI 109
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.... between the words "paid" and "payable." 3. CIT(A) erred in upholding the AO's order of disallowing Rs. 15.85 lakhs paid towards interest on loan paid by way of Equated Monthly installments (EMIs) through Post Dated Cheques. 4. The order of the CIT(A) is against the principles of equity and justice." 2. I have heard Ld. Representatives of both the parties and perused the findings of the authorities below. 3. The AO noted that the assessee has taken unsecured loan of Rs. 1,13,02,477/- from Religare Finvest Ltd. and paid an amount of Rs. 15,85,380/- as interest thereon. The assessee asked by the AO to furnish the details of TDS deducted on interest payment and showcaused why expenditure be not disallowed u/s 40(a)(ia) ....
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....lant and order of the AO and I find that the issue involved was that the assessee has made the payment of interest of amounting to Rs. 15,85,380/- as interest on unsecured loan of amounting to Rs. 1,13,02,477/- obtain from Religare Finvest Ltd.but no IDS was deducted on interest payment. The appellant has submitted before the AO that TDS was not required to be deducted by MD being an individual. The entire fund has been used by the assessee company for business. The AO concluded that the loan has been given to the assessee company and not to the MD of the assessee. So the AO disallowed this amount u/s 40(a)(ia) for non deduction of TDS. 2.2.1. The appellant has submitted that the AO had made disallowance for non deduction of Tax u/....
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....tor of Settlements V. M.R. Apparao (2002) 4 SCC 638 at p. 650, relied upon by Mr. Deb. In these decisions, it was held that the decision by the Apex Court dismissing the SLP without entering into the merits of the case would not be binding under Article 141. If the SLP is dismissed by non-speaking order, it does not lay down any law. Article 141 is not applicable on a statement of fact and matter other than law. 2.2.3. As facts discussed above the appellant has relied the decision of Hon'ble Allahabad High Court which has dismissed inlimany by the Hon'ble Supreme Court which does not lay down the law. Further the same issue has been decided by the Hon'ble High Court of Gujarat and Hon'ble High Court of Calcutta in t....
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.... the control of the assessee. The nominal delay in filing the appeal is, therefore, condoned. 6. After considering rival submissions, I am of the view that no inference is called for in the matter. The Ld. counsel for the assessee submitted that no amount was payable at the end of the year and that provisions of section 40(a)(ia) are not applicable to the facts of this case. However, Ld. counsel for the assessee was not able to satisfy as to how provisions of section 40(a)(ia) are not applicable on this case. The authorities below have specifically brought the material on record that loan was granted to the assessee company and that repayment of loan amount and interest was paid through the account of the assessee company. The asset pled....