Case Law Details
Sh. Nandkishore Bhikamchand Rathi Vs ITO (ITAT Nagpur)
The assessment order passed by disallowing an amount of Rs.5,18,596/- on the ground that the assesse has not followed the provision of Section 194A r.w.s. 40(a)(ia) of Income Tax Act, 1961.
ITAT find both the CIT(A) and the AO have not examined as to whether or not Smt. Kamalabai B. Rathi has taken into account of the income of interest received from the assessee of Rs. 1,64,130/- while computing the income in her return filed on 29.03.2013 and whether she has paid the tax due on the income declared by her in the return or not in terms of second proviso to Section 40 (i))(ia) R/w first proviso to Section 201(1) of the Act.
Therefore, ITAT inclined to remand the matter to the file of Ld. AO to examine as to whether or not Smt. Kamalabai B. Rathi has taken into account of the income of interest received from the assessee of Rs.1,64,130/- while computing the income in her return filed on 29.03.2013 and has paid the tax due on the income declared by her in the return, on examination of the same, the AO is directed to decide the issue in accordance with law.
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