2020 (3) TMI 1488

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....s of the case, the Ld. CIT (A) was correct in deleting the disallowance of Rs.4,32,80,710/- made by the AO u/s.40(a)(ia) without appreciating the fact that the assessee has not deducted & deposited TDS on the interest paid violating the provisions of sec 40(a)(ia) of the IT. Act, 1961? (ii) Whether on the facts and in the circumstances of the case, the Ld. CIT (A) was right in deleting the adjustment of Rs.5,25,00,000/- made by the AO in relation to such amount transferred to Debenture Redemption Reserve (DRR) while computing the Book Profit u/s 115JB of the IT. Act, even though the amount transferred to DRR represents appropriation of profit and is not a charge on profit & loss account qualifying for deduction, as held by Hon'ble De....

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.... in the view of the fact that the assessee did not pay TDS before due date of filing of return on interest payment of Rs.432.80 Lacs. Although the assessee initially disallowed the same while filing original return of income but claimed it in the revised return of income, inter-alia, by relying upon CBDT Instruction No.275/201/95-IT(B) dated 29/01/1997 and the decision of Hon'ble Supreme Court rendered in Hindustan Coca Cola Beverages Pvt. Ltd. V/s CIT (293 ITR 226). Reliance was also placed on the benefit granted by second proviso to Section 40(a)(ia) as inserted by Finance Act, 2012 w.e.f. 01/04/2013 since the deductee had already included the relevant income in his total income and paid due taxes against the same. However, disregarding t....

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....n the case of assessee's holding company namely Ackruti City Limited (ITA No.7696/Mum/2014). The attention was drawn to Sec. 117C of the Companies Act and the circular of Ministry of Law, Justice and Company affairs, Government of India Circular No.09/2002 dated 18/04/2002 which would mandate creation of DRR. Reliance was also placed in the decision of Hon'ble Supreme Court in National Rayon Corporation Ltd. V/s CIT (227 ITR 764) to draw the distinction between reserve and provision. The Ld. CIT(A) relying upon the decision of this Tribunal in in the case of assessee's holding company namely Ackruti City Limited (ITA No.7696/Mum/2014 dated 30/06/2017) directed Ld. AO to allow the deduction of the same while computing Book Profits u/s 115JB....