MAHENDRA KUMAR JAIN H.U.F,RAJASTHAN vs. SHL-W-(2)(6) ITO WARD 2(2), GUWAHATI

ITA 387/GTY/2025Status: DisposedITAT Guwahati14 July 2026AY 2023-246 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(A)'s order and remanded the matter to the AO. The assessee is directed to furnish evidence that payees included the income in their returns and paid tax, which would negate the need for TDS and thus the disallowance.

What were the facts?

The assessee claimed deductions on interest expenditure related to loans given, while earning significant interest income. The Assessing Officer treated the interest income as business income and disallowed a portion of the interest expenditure for non-deduction of TDS.

What were the issues?

Whether the disallowance under Section 40(a)(ia) for non-deduction of TDS is justified when the payees have already paid tax on the interest income. Whether the interest income and expenditure should be treated as business income or income from other sources.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 201,Section 194A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, GUWAHATI ‘DB’ BENCH AT KOLKATA

Before: SHRI SONJOY SARMA & SHRI RAKESH MISHRA

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2023-24 dated 31.10.2025. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal:

"

1.

For that on the facts and in the circumstances of the case the order of the NATIONAL FACELESS APPEAL CENTRE (NFAC) Vadodara is bad in law.

2.

For that on the case and in the circumstances of the case, the NATIONAL FACELESS APPEAL CENTRE (NFAC) erred to upheld the dec

The order continues below.

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