2020 (12) TMI 1279

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....firming the assessment order passed by the Ld. Assessing Officer who has finalized the assessment u/s. 143(3) of the IT. Act for assessment year 2012-13 determining the total income at Rs. 37,83,290/- on 23/03/2015 as against returned income of Rs. 3,33,8507-. Thus, the disallowance has been made by the Ld. Assessing Officer of Rs. 34,49,439/- u/s. 40(a)(ia) of the IT. Act. 2. The Hon'ble CIT(A) has held at Para - 6 in his Appellate Order as under:- "The introduction of second proviso to Sec. 40(a)(ia) of the Act by Finance Act, 2012 has clear mandated that it is applicable from 01-04-2013 whereas, the appellant case pertains to Assessment Year 2012-13. Moreover, Hon'ble Kerala High Court in the case of Prudential Logistics & ....

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....under section 44AB. The return of income was selected during the scrutiny and assessment under section 143(3) on 23.03.2015. During the assessment, the Assessing Officer noted that assessee has debited interest on loan availed from the bank as well as from Non-banking Finance Corporations (NBFCs). The Assessing Officer further noted that assessee paid interest to NBFC without deducting tax at source. The assessee made following payment of interest with deducting tax at source: Sr. No. Name of the NBFC Amount of Interest Paid (Rs.) 1 India Bulls 1,38,669/- 2 L & T Finance Ltd. 6.389/- 3 India Bulls 33,04,381/-   TOTAL 34,49,439/- 3. The Assessing Officer issued show cause notice as to why the interest payment should be d....

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....f;  CIT Vs Ansal Landmark Township (2015) 377 ITR 635 ( Delhi High Court,  Rajeev Kumar Aggarwal Vs ACIT (ITA No. 337/Agra/2013 dated 29th May 2013,  Bansidhar Construction Vs ITO (ITA No. 907/Ahd/2011 dated 7th November 2014,  Frohberg Reality Pvt. Ltd vs. ACIT [in ITA. 2066/AHD/2014 for AY.2010-11] dated 12.12.2014 and  ITO vs. Shri Parasmal Manekchand Jain [in ITA. 2690/Ahd/2012 for AY.2008-09] dated 22.11.2013. 5. On the other hand, the ld. DR for the Revenue submits that the assessee has contravened the provision of section 194A of the Income Tax Act and thus, the assessing officer was right and justified in making disallowances under section 40(a)(ia). The Ld. DR prayed for sustain the order of asse....