Case Law Details
ACIT Vs Ms. Krystal Aviation Services Pvt. Ltd. (ITAT Mumbai)
Conclusion: TDS under section 194A was liable to be deducted on amount paid towards interest on loan availed for purchasing a vehicle even when the amount in question was debited from the account of assessee through ECS and disallowance under section 40(a)(ia) was to be made for non-deduction of tax at source even when nothing remained outstanding at the end of the year as the provisions contained under section 40(a)(ia) did not make any distinction between the amount paid or payable.
Held: Undisputedly, assessee had paid the amount to Tata Finance Ltd. towards interest on loan availed for purchasing a vehicle. Merely because the amount in question was debited from the account of assessee through ECS it did not absolve the assessee from deducting tax at source as the nature of payment made clearly came within the ambit of section 194A. Further, the claim of assessee that the amount in dispute was paid in the relevant previous year and nothing remained outstanding at the end of the year was of no relevance as the provisions contained under section 40(a)(ia) did not make any distinction between the amount paid or payable. Therefore, dis allowance under section 40(a)(ia) had to be made even in respect of amount paid in the relevant previous year without deduction of tax at source under section 194A.
FULL TEXT OF THE ITAT JUDGMENT
Aforesaid appeal has been filed by the assessee challenging the order dated 1st December 2016, passed by the learned Commissioner (Appeals)–12, Mumbai, for the assessment year 2012-13.
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