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| The Tax Publishers2022 TaxPub(DT) 5815 (Ahd-Trib) INCOME TAX ACT, 1961
Section 40(a)(ia)
Where it was found that the CIT(A) directed the AO to verify whether the payee had already offered the amount as income in the Return of income however, it was concluded that the addition made by the AO was deleted, which was self-contrary to the findings made by CIT(A) therefore, it was appropriate to remand back the matter to the file of the AO for limited purpose of verification, whether the payee had already offered the amount as income in the Return of Income and make appropriate disallowance under section 40(a)(via) on interest expense paid to NBFCs pursuant to the verification thereon.
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Business disallowance under section 40(a)(ia) - Non-deduction of TDS - Interest payments to NBFCs -
AO made rectification of mistake under section 154 by making disallowance under section 40(a) (via) on interest expense paid to NBFCs without making deduction as required under section 194A. Aggrieved by order of AO, assessee filed appeal to CIT(A) who deleted the addition made. Aggrieved by order of CIT(A) now revenue was in present appeal. Held: It was found that the CIT(A) directed the AO to verify whether the payee had already offered the amount as income in the Return of income. However, it was concluded that the addition made by the AO was deleted, which was self-contrary to the findings made by CIT(A). Therefore it was appropriate to remand back the matter to the file of the AO for limited purpose of verification, whether the payee had already offered the amount as income in the Return of Income and make appropriate disallowance pursuant to the verification thereon.
REFERRED :
FAVOUR : Matter remanded
A.Y. :
IN THE ITAT, AHMEDABAD BENCH
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