2023 (4) TMI 1112

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....icial to the Appellant is bad in law. 2. The CIT(A) has erred in confirming the action of AO in disallowing 30% of interest expenditure of Rs.77,74,626/- u/s 40(a)(ia) on the ground that there is a delay in furnishing Form 15G/15H. 3. The CIT(A) has erred in confirming the action of Assessing Officer (`A0') in disallowance of interest expenditure without appreciating the fact that: i) Filing of Form 15G/15H before Pr.CIT is only procedural in nature, which cannot result in disallowance u/s 40(a)(ia); ii) The recipients of income have already filed return of income and paid applicable taxes, if any. 4. The CIT(A) has erred in confirming the action of the AO in considering income under head "Income from Other Sources" of Rs.2.19....

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....led upon assessee to provide details regarding the TDS deducted on interest that exceeded Rs.5,000/-. 2.2 It was observed by the Ld.AO that assessee did not furnish any details and therefore an addition of Rs.77,74,626/- was made in the hands of the assessee. 2.3 Aggrieved by the order of the Ld.AO, assessee preferred an appeal before the Ld.CIT(A). 2.4 The Ld.CIT(A) deleted the disallowance made on interest amounting to Rs.6,27,000/- on the loan on prorate basis however disallowance of interest expenditure amounting to Rs.77,74,626/- for non-deduction of TDS by the Ld.AO was upheld. The Ld.CIT(A) observed and held as under: "7.4 I have carefully considered the written submission as well- as case laws relied upon but respectfully decli....

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....n addition of Rs.2,19,570/- under the head income from other sources without appreciating that the figure of returned loss adopted for computation was arrived at after considering the income from other sources. 2.6 Aggrieved by the order of the Ld.CIT(A), assessee is in appeal before this Tribunal. 3. The Ld.AR submitted that Ground no. 1 is general in nature and therefore do not require adjudication. 4. Ground nos. 2-3 are in respect of the disallowance of interest expenditure u/s. 40(a)(ia) amounting to Rs.77,74,626/- for non furnishing Form 15G / Form 15H. 4.1 The Ld.AR submitted that the assessee had filed the necessary form 15G/15H from the unsecured creditors which is placed at pages 111 to 226 of the paper book. He submitted that....