K.N.S.TRANSPORTS,NAMAKKAL vs. ITO WARD 1, NAMAKKAL

2 2. The short point under dispute in this appeal of assessee is as regards to disallowance of sum of Rs.4,27,801/- i.e., interest expenses made by AO and confirmed by the CIT(A) for non- deduction of TDS by invoking the provisions of section 40(a)(ia) of the Act.

We have heard ld. Senior DR for the Revenue. None is present from assessee’s side. However, assessee has filed written submissions vide letter dated 28.02.2022 and stated that the appeal may be decided on the basis of above written submissions. We noted that the assessee has not deducted TDS on interest payments of the following items:- a) India Bulls Housing Finance Ltd Rs.997,183 b) Mahindra Finance Ltd Rs.428,820 Total Rs.1426003/- The AO disallowed 30% of the above interest amount of Rs.4,27,801/- and added to the returned income of the assessee. The CIT(A) confirmed the same. Now before us the assessee filed a certificate issued by Chartered Accountant i.e., certificate of accountant under first proviso to sub-section (1) of section 201 of the Income-tax Act, 1961 for certifying the furnishing of return of income, payment of tax etc., by the payee. The payee has included the above interest amount of Rs.14,26,003/- in the respective 3 returns and also disclosed a sum of Rs.6,24,725/-. The payee has taken into account the above receipt of interest and computed its taxable income and disclosed for the relevant assessment year 2015-16. Once the Chartered Accountant has certified in the relevant form, which is placed before us, we find that this addition is unwarranted and deserves to be deleted. We direct the AO accordingly.

In the result, the appeal filed by the assessee is allowed.