TaxTMI 
TaxTMI 
2018 (10) TMI 1225
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.... prejudice to each other :- "1. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in disallowing a sum of Rs. 63,750/- by invoking the provision of section 14A r.w.r. 8D of the Income Tax Act, 1961, without considering the facts and circumstances of the case. 2. On the facts and circumstances of the case as well as in law , the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in disallowing a sum of Rs. 34,82,572/- u/s 40(a)(ia) of the Income Tax Act, 1961 , on the alleged plea that TDS was not deducted , without considering the facts and circumstances of the case . 3. On the facts and circumstances of the case as well as in Law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in treating the share loss of Rs. 1,00,08,493/- traded through Vineet Enterprises as alleged bogus loss , without considering the facts and circumstances of the case. 4. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in not adjudicating the ground for making an addition of ....
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....n 40(a)(ia) of the 1961 Act, vide assessment order dated 23.03.2015 passed by the AO u/s 143(3) of the 1961 Act. The AO also observed from Profit and Loss Account that the assessee has paid interest of Rs. 30,60,799/- to IIFL NBFC . The AO observed that the assessee has taken a loan from the IIFL for its transactions in shares , on which interest is paid without deduction of income-tax at source which as per AO infringed provisions of Section 40(a)(ia) of the 1961 Act. The AO disallowed interest expenses to the tune of Rs. 30,60,799/- which was added back to the income of the assessee keeping in view provisions of Section 40(a)(ia) of the 1961 Act . Thus, both the disallowances aggregating to Rs. 34,82,572/- were made by adding the same to income of the assessee by the AO on grounds of non deduction of income-tax at source while making these payments ,vide assessment order dated 23.03.2015 passed by the AO u/s 143(3) of the 1961 Act. 5. Aggrieved by the additions as were made by the AO vide assessment order dated 23.03.2015 passed u/s 143(3) of the 1961 Act, the assessee filed first appeal before the Ld. CIT(A). The assessee submitted before learned CIT(A) that payment of ....
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....d by the AO.The learned CIT(A) also observed that there was no certificate issued by the AO authorising „NIL‟ TDS to the deductee. The learned CIT(A) was also of the view that insertion of second proviso to Section 40(a)(ia) inserted by Finance Act,2012, w.e.f. 01.04.2013 was prospective in nature. The learned CIT(A) also relied upon certain case laws wherein the amendment introduced by Finance Act 2012, was held to be prospective in nature applicable with effect from 01.04.2013. Thus, both these additions as were made by the AO were sustained/upheld by learned CIT(A) , vide appellate order dated 01.02.2017. 6. Aggrieved by the appellate order passed by learned CIT(A) dated 01.02.2017 against the assessee dismissing assessee‟s appeal, the assessee has come in an appeal before the tribunal. The learned counsel for the assessee submitted that Chartered Accountant certificate was filed before learned CIT(A) as an additional evidence with respect to payment of interest made to M/s. India Infoline Finance Ltd., to the tune of Rs. 30,60,799/- without deducting income-tax at source. It was submitted that certificate was issued by CA‟s of IIFL after verification ....
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....ertifying after verification of records of IIFL that the said interest of Rs. 30,60,799/- paid by the assessee was duly accounted for by recipient company M/s. India Infoline Finance Ltd. and the same was duly included in the income by the said recipient in return of income filed with Revenue and due taxes paid to Revenue. The said certificate is placed in paper book / page 24-25 filed with tribunal. The Ld. CIT(A) before whom the certificate was filed for the first time rejected the same at threshold without admitting the same on the grounds that it was obtained post filing of return of income and also post assessment farmed by the AO. The learned CIT(A) was also of the view that second proviso to Section 40(a)(ia) of the 1961 Act as introduced by Finance Act, 2012 wef 01-04-2013 cannot be given retrospective effect. The Hon‟ble Delhi High Court in the case of Ansal Land Mark Township Private Limited(supra) had held that insertion of second proviso to Section 40(a)(ia) of the 1961 Act is to be given retrospective effect wef 01-04-2005. We are of the considered view that the CA certificate filed by the assessee is a material evidence for adjudicating this issue and we admit t....
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.... that the word 'interest' is very wide and would include interest on unpaid purchase price payable in any manner which would include amount payable by means of irrevocable letter of credit. Usance interest paid by tax-payer apart from purchase price of ship would fall within the definition of term 'interest'. Thus, as could be seen that the word „interest‟ used in Section 2(28A) is of widest amplitude and delayed payment made by the assessee towards delayed pay-in-charges for making delayed payment towards purchase consideration of shares will be covered within definition of „interest‟ and income-tax is required to deducted at source u/s 194A of the 1961 Act. The reliance of the assessee on the following judgment will not be of any help to the assessee as these are clearly distinguishable as could be seen below: a) In the case of Vidyut Corporation (supra), the issue before the Hon‟ble High Court was claim of deduction u/s 80IB of the 1961 and in that context Hon‟ble Gujarat High Court held that payment of interest for delayed payment shall form component of sale price as it has same nature and character as a sal....