Apurva Natvar Parikh and Co. (P) Ltd. Vs. Dy. CIT (ITAT Mumbai)
The issue taken by the assessee in grounds of appeal no.2 is with regard to dis allowance of Rs. 1,26,65,630 under section 40(a)(ia) of the Act in respect of payment made to Saikrupa Food Services (P) Ltd. (SKFS) on the ground that the assessee failed to deduct the tax at source. The learned Counsel at the outset submitted that as per the second proviso to section 201 of the Act, the assessee has already furnished a certificate that the recipient has already offered the said amount in the income tax return and duly paid taxes thereon, therefore, the issue is covered by the second proviso to section 201 of the Act and hence no dis allowance under section 40(a)(ia) should be made and prayed that the same should be deleted. The learned Authorized Representative also placed on record a decision of the Hon’ble Delhi High Court in the case of CIT v. Ansal Land Mark Township (P) Ltd. (2015) 377 ITR 635(Del) and stated that the Hon’ble Delhi High Court has decided the issue in favour of the assessee and the same analogy be applied for in this case also. Hence, no dis allowance under section 40(a)(ia) would be made.
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