Gopal Dineshchandra Tulshan v/s Income Tax Officer

Parties Involved

Facts Summary

The assessee, Gopal Dineshchandra Tulshan, is a proprietor of M/s. Tulshan World Furniture, Akola, dealing in readymade furniture on wholesale and retail basis. During the year under consideration, the assessee paid interest to his brother’s proprietary concern, M/s. Kanch Ghar, Akola, and other depositors totaling Rs. 2,03,227, on which TDS was not deducted. Hence, the Assessing Officer disallowed the pertaining expenses i.e., interest of Rs. 2,03,227 under section 40(a)(ia) of the Income Tax Act, 1961. Aggrieved by this, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals), which was dismissed. The assessee then filed a second appeal before the Income Tax Appellate Tribunal, Nagpur.…

Legal Issues

• 1. Disallowance of interest expenditure at Rs. 2,03,227 under section 40(a)(ia) of the Income Tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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