Meera Road Lines Vs. ITO-2(1), Bhilai

Parties Involved

Facts Summary

Meera Road Lines, the assessee, filed an appeal against the order passed by the ADDL/JCIT(A)-6, Chennai dated 06.05.2024, which arose from the intimation issued by the Centralized Processing Centre (CPC)/A.O under Sec.143(1) of the Income-tax Act, 1961 for the assessment year 2019-20. The assessee firm had filed its return of income on 14.11.2019, declaring an income of Rs.87,490/-. The DCIT, CPC disallowed u/s. 40(a)(ia) of the Act the interest paid by the assessee firm to NBFCs aggregating to Rs.8,39,753/-. The assessee firm carried the matter in appeal before the CIT(Appeals) who principally concurred with the view taken by the A.O and upheld the disallowance u/s. 40(a)(ia) of the Act. The assessee firm then carried the matter in appeal before the tribunal.…

Legal Issues

• 1. Whether the disallowance u/s.40(a)(ia) of the Act of assessee’s claim for deduction of interest paid to NBFCs is sustainable?
• 2. Whether the assessee firm can be treated as an 'assessee in default'?

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• M/s. SOCOMEC India Pvt. Ltd vs. Dy. CIT, TDS Circle, Gurgaon

  Delhi Bench benchAY 2018-19Allowed

• Gopal Dineshchandra Tulshan v/s Income Tax Officer

  Nagpur bench

• Subhashish Chatterjee vs. ITO, Ward 28(3)

  Delhi Bench benchAY 2019-20Allowed

• Pinnacle Vastunirman Private Limited vs. DCIT, Circle-4, Pune

  Pune bench

• M/s. Unitech Acacia Projects Pvt. Ltd. vs. ACIT

  Delhi bench

• M/s Shring Construction Company Pvt. Ltd. vs ACIT/DCIT, Circle-2, Muzaffarnagar

  Delhi Bench ‘F’, New Delhi benchAY 2012-13Partly Allowed