2015 (11) TMI 1820

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.... dated 22.12.2008. 2. The first issue in this appeal of assessee is against the order of CIT(A) confirming the disallowance of payment of liquidated damages on account of non-supply of material for non-deduction of TDS u/s. 194C of the Act by invoking the provisions of section 40(a)(ia) of the Act. For this, assessee has raised following ground no.1: "1. That the Ld. CIT(a) erred in confirming disallowance amounting to Rs. 16,72,684/- u/s. 40(a)(ia) of the Income Tax Act, 1961 on the payment made as liquidated damages on account of non-supply of materials against advance received. The said payment does not attract TDS. Further, the entire payment of Rs. 16,72,684/-, was made during the year and nothing remained payable at the en....

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....ted for setting aside the issue to the file of AO. On query from the Bench, Ld. Sr. DR has not objected to the proposal. In view of the above facts and circumstances, we are of the considered view that let the AO examine the details of recipients of liquidated damages, which are to be filed by assessee and in case these receipts are included in their respective return of income and paid taxes thereon, the AO will delete the disallowance made u/s. 40(a)(ia) of the Act in view of the decision in the case of Ansal Land Mark township (P) Ltd., supra. This issue of assessee's appeal is allowed for statistical purposes. 5. The next issue i.e. ground no.2 is as regards to disallowance u/s. 40(a)(ia) of the Act amounting to Rs. 23,77,041/- on....

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....grieved, assessee preferred appeal before CIT(A), who also confirmed the action of AO. Aggrieved, now assessee is in second appeal before us. 8. Before us, ld. Counsel for the assessee stated that there are interest received and also interest paid on these amounts and there are no interest free loans. Ld. Counsel for the assessee tried to file details but these are new evidence but he requested that let this issue be set aside to the file of AO for fresh examination. On query from the Bench, Ld. Sr. DR has not objected to the proposal. In view of the above facts and circumstances, we set aside this issue to the file of AO to re-decide the issue after taking into consideration the details filed by the assessee whether the assessee has rec....