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| The Tax Publishers2020 TaxPub(DT) 2325 (Mum-Trib) INCOME TAX ACT, 1961
Section 80-IA
Since Income tax refund arose to assessee due to excess TDS made by customers against payment to be made to assessee and therefore,e TDS was part and parcel of business receipts and, therefore, assessee was eligible to claim deduction under section 80-IA as regards interest on Income-Tax refund.
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Deduction under section 80-IA - Allowability - Interest on income-tax refund arising due to excess TDS -
Assessee claimed deduction under section 80-IA as regards interest received on income-tax refund. AO denied assessee's claim and brought to the same tax as income from other sources. Held: Refund arose to assessee due to excess TDS made by customers against payment to be made to assessee and therefore, TDS was part and parcel of business receipts. Had the customers not deducted excess amount of TDS, assessee would have received surplus funds which could have been used for business purposes/repayment of loans etc. Accordingly, interest liability would have been less and profits would have been more and, therefore, assessee was eligible to claim deduction under section 80-IA as regards interest on Income-Tax refund.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
INCOME TAX ACT, 1961
Section 80-IA
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