No disallowance u/s. 40(a)(ia) when tax on income already paid by deductee: ITAT Pune

Kudale Agro Goods Vs ITO (ITAT Pune)

ITAT Pune held that disallowance under section 40(a)(ia) of the Income Tax Act cannot be sustained interest income is already reflected in the return of the deductee and tax is already paid on the same. Accordingly, appeal allowed to that extent.

Facts- During the course of the assessment proceedings, AO found that the assessee has shown unsecured loan of Rs.4,79,21,411/- as on 31.03.2017 and paid total interest of Rs.13,06,833/- to four Non Banking Financial Companies (NBFCs) which was debited to the profit and loss acco

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