COLO COLOUR PRIVATE LIMITED ,MUMBAI vs. INCOME TAX OFFICER- WARD 6(2)(1), MUMBAI

ITA 817/MUM/2024Status: DisposedITAT Mumbai26 September 2024AY 2018-19Bench: SHRI OM PRAKASH KANT (Accountant Member), SHRI SANDEEP SINGH KARHAIL ( (Judicial Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the disallowance under Section 40(a)(ia) was not warranted if the conditions of the proviso to Section 201 were met. Since the assessee provided supporting documents before the Tribunal, the matter was restored to the Assessing Officer for verification of these additional evidences.

What were the facts?

The assessee company debited interest payments but did not deduct tax at source. The Assessing Officer disallowed this interest expense under Section 40(a)(ia) of the Income-tax Act. The assessee claimed that the recipients had furnished Form 15G/15H and filed their returns, paying the due tax.

What were the issues?

Whether the disallowance of interest expense under Section 40(a)(ia) is justified when the recipients have paid their taxes and filed their returns, fulfilling the conditions of the proviso to Section 201.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 201,Section 139

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “C” MUMBAI

Before: SHRI OM PRAKASH KANT & SHRI SANDEEP SINGH KARHAIL

For Appellant: Mr. Krishnakumar, Sr. DR
Pronounced: 27/09/2024

PER OM PRAKASH KANT, AM

This appeal has been filed by the assessee against order dated 17.01.2024 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2018-19. Colo Colour Pvt. Ltd 2

2.

In grounds raised the assessee is ag In grounds raised the assessee is aggrieved with the grieved with the disallowance of interest of Rs.2,81,58,492/ disallowance of interest of Rs.2,81,58,492/- u/s 40(a)(ia) of the u/s 40(a)(ia) of the Income-tax Act, 1961 (in short ‘the Act’). tax Act, 1961 (in short ‘the Act’).

3.

Briefly stated, facts of the case are that the assessee company Briefly s

The order continues below.

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