TaxTMI 
TaxTMI 
2018 (10) TMI 295
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.... of this consolidated order. 2. The sole issue involved in both the appeals is that, Assessing Officer has erred in law and on facts by invoking the provisions of section 40(a)(ia) made on account of interest paid on unsecured loans raised from Bajaj Auto Finance Company. In the case of Rachna Jain, the amount of interest disallowed is Rs. 1,21,516/-; and in the case of Shyam Sunder Jain, the amount disallowed is Rs. 3,14,625/-. 3. The ld. Assessing Officer has made the disallowance on the ground that assessee has paid interest to NBFC, Bajaj Auto Finance Company, on which tax had not been deducted at source u/s 194A and thus, assessee have failed to comply with the provisions of Section 40(a)(ia). 4. Before the ld. CIT(A), the assessee ....
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....r perspective but has mainly harped on the ground that out of 17 occasions before the Assessing Officer, assessee did not appear on various occasions; and secondly, certificates filed by the assessee are not in Form no.26A. The main issue involved here is, whether in view of 2nd proviso to Section 201(1) read with 1st proviso to Section 201(1) the conditions mentioned therein have been met or not. These conditions are as under: (i) The payee has furnished his return of income under section 139; (ii) The payee has taken into account such sum for computing income in such return of income; and (iii) The payee has paid the tax due on the income declared by him in such return of income, and (iv) The payee person furnishes a certifi....