PIRAMAL CAPITAL AND HOUSING FINANCE LIMITED,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX TDS - 2 (1), MUMBAI, MUMBAI

ITA 2347/MUM/2024Status: DisposedITAT Mumbai25 November 2024Bench: SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the excess payment over the principal value for the acquisition of NCDs, ICDs, and Term Loans did not constitute 'interest' as defined in the Income Tax Act. Therefore, the assessee was not liable to deduct tax at source on these amounts.

What were the facts?

The assessee, Piramal Capital and Housing Finance Limited, purchased Non-Convertible Debentures (NCDs), Inter Corporate Deposits (ICDs), and Term Loans from a related entity. The Assessing Officer held the assessee as an assessee-in-default for not deducting TDS on the accrued interest component of these purchases.

What were the issues?

Whether the excess payment made for acquiring NCDs, ICDs, and Term Loans, which included accrued interest, constituted 'interest' liable for TDS under Sections 193 and 194A of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 201,Section 201(1A),Section 193,Section 194A,Section 2(28A)

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, C BENCH, MUMBAI

Heard together (2 matters)

ITA No. 2348/MUM/2024
ITA No. 2345/MUM/2024

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Per Bench:

1.

These are four appeals preferred by the Assessee pertaining to Assessment Years 2017-2018, 2018-2019, 2019-2020 and 2020- 2021. Since identical issues were raised in the appeals, the same were heard together and are, therefore, being disposed by way of a common order.

The order continues below.

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