2018 (12) TMI 1131

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....e Income Tax Act, 1961 (hereinafter referred to as 'the Act'). 2. The grievances raised by the Revenue are as follows: "1. That on the facts and circumstances of the case ld. CIT(A)-7/Kol/ had erred in deleting the addition on a/c of disallowance of interest paid to different parties amounting to Rs. 4,41,12,662/- u/s 40(a)(ia). 2. That the ld. CIT(A)-7/Kol was wrong in holding that the second proviso to section 40(a)(ia) is applicable to the instant case for Assessment Year 2012-13 although second proviso to section 40(a)(ia) was not applicable to the Assessment Year 2012-13 since this proviso was inserted by Finance Act 2012 i.e w.e.f. 01/04/2013 i.e. Assessment Year 2013-14. 3. That the petitioner craves lea....

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....sessee felt that the finance charges are not interest and hence section 194A is not attracted and as such no TDS had been deducted. However, the assessing officer rejected the contention of the assessee and noted that since the assessee had not submitted any documentary evidence or legal/judicial explanation in support of above set of arguments of the assessee which claims that monthly payments included hire charges and such hire charges were not subject to TDS u/s 194A of the Act. Therefore, the assessee's entire claim of interest payment to various NBFCs aggregating to Rs. 4,41,12,662/-that were debited in her books of accounts as payable at any time in the FY 2011-12, without making any TDS u/s 194A was disallowed under section 40....