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Income Tax Appellate Tribunal, BENGALURU BENCH A, BENGALURU
Before: SMT. ASHA VIJAYARAGHAVAN
PER S. JAYARAMAN, ACCOUNTANT MEMBER :
These are appeal and cross objection filed by the Revenue and the assessee , respectively, against the order of the CIT (A), Bengaluru-6, dt.08.12.2015, for the assessment year 2012-13
Shri. M. R. Palaniyappan, the assessee, engaged in the business of providing of contract carriage Bus Service to the Commuters and in the Digging of Borwells, filed his return through E-filing on 25-09-2012 for ITA.183 & CO.68/Bang/2016 Page - 2 this asst year declaring an income of Rs. 2,60,720/-. The assessee claimed payment finance charges, interest and interest on loans as under:
Since M/s. Sundaram Finance Ltd., lndia Bulls Ltd., M/s. Sundaram HFC Ltd., M/s. Sundaram BNP Paribasu Ltd., are not covered u/sec.
194A (3)(iii), the AO held that the assessee is liable to deduct tax at source U/Sec. 194A(1), but made the payments at Rs.1,25,40,612 /- without deducting tax , hence the said interest payments are inadmissible u/sec. 40(a)(ia) and added to the income. On an appeal, the CIT (A), relying this Tribunal Decision in the case of M/s Capital Pharma in 2013 dt 14.8.2014 for ay 2005-06, allowed the appeal.
Aggrieved, the Revenue filed the appeal with the following grounds:
ITA.183 & CO.68/Bang/2016 Page - 3 ITA.183 & CO.68/Bang/2016 Page - 4
The assessee filed a CO , No.68/Bang/2016 , with the following grounds :
ITA.183 & CO.68/Bang/2016 Page - 5
The assessee filed an application for admission of additional evidence under Rule 29 of the ITAT Rules , enclosing the certificates issued u/s 201(1) by (i)M/s. Sundram Finance Ltd signed by P Babu, CA Membership No 203358 on behalf of the company,(ii) M/s. Sundram BNP Paribasu Home Finance Ltd, signed by P Babu, CA Membership No 203358 on behalf of the company and (iii) Indiabulls Finance Ltd , signed by Neha Jain CA Membership No 511402 on behalf of the company and pleaded that they could not be produced before the AO or before the CIT(A) as he was not in possession of them. Since these documents are relevant for this proceedings in support of his claim that the payee has paid tax on the interest paid by him, they are related to the facts on the subject matter of appeal, he was not in possession of them at the time of assessment or before the first appellate authority, they were secured by him in May, August, September and October 2016, respectively, hence it was beyond his reach and control etc and hence pleaded to admit them. We have heard the rival contentions, find merit in the submissions and hence admit the additional evidence. Since, these certificates were not produced before the AO, this issue is remitted back to the AO to re- examine the issue in the light of the additional evidence and adjudicate afresh ITA.183 & CO.68/Bang/2016 Page - 6 after affording due opportunity to the assessee.
In the result, the Revenue’s appeal and the Assessee’s cross objection are remitted to the AO for re-examination and fresh adjudication .
Order pronounced in the open court on 6th day of February, 2017.