TIRUPATI SARJAN LTD.,AHMEDABAD vs. THE ACIT, MEHSANA CIRCLE, MEHSANA

This appeal by the Assessee is directed against the order of the Ld. CIT(A), Gandhinagar, Ahmedabad dated 28.07.2015 pertaining to A.Y. 2012-13. The

The first ground relates to the disallowance of interest expenses of Rs. 2,90,949/- paid to NBFC.

While scrutinizing the return of income for the year under consideration, the A.O. noticed that the assessee has paid interest of Rs. 94,986/- to Magma Fincorp Ltd. and Rs. 1,95,963/- to Kotak Mahindra Prime Ltd. The A.O. found that the assessee has not deducted tax at source as per the provisions of the law. Invoking the provisions of Section 40(a)(ia) of the Act, the A.O. disallowed Rs. 2,90,949/-.

Assessee carried the matter before the ld. CIT(A) but without any success.

Before us, the ld. counsel for the assessee stated that though no tax was deducted at source from the impugned payment but the same has to be considered in the light of the amendment brought to Section 40(a)(ia) of the Act. It is the say of the ld. counsel that the recipients have offered the income in the respective returns of income and therefore there is no liability by the assessee to deduct tax at source.

We have given a thoughtful consideration to the submissions made by the ld. counsel. Though, the ld. counsel could not furnish any evidence whether the said NBFCs have offered the interest income in their respective returns of income but at the same time, we are of the opinion that the same needs to be

Ground no. 2 relates to the addition of Rs. 68,806/- being difference in the statement as per 26AS and as per books of accounts.

We find that during the course of the scrutiny assessment proceedings, the assessee was asked to furnish the reconciliation statement as per 26AS vis-à-vis the books of accounts, the assessee could not explain the receipt of Rs. 68,806/- reflected in Form 26AS. The A.O. added the same on the basis of the concession made by the assessee.

Before us, the ld. counsel for the assessee stated that on verification of Form 26AS, there is no such receipt by the assessee. In the interest of justice and fair play, we restore this issue to the files of the A.O. The assessee is directed to furnish fresh reconciliation statement to demonstrate that there is no such receipt of Rs. 68,806/-. The A.O. will decide the issue afresh after necessary verification. Ground no. 2 is also treated as allowed for statistical purpose.

Ground no. 3 was not pressed before us and the same is dismissed as not pressed.