| COURT: | ITAT Mumbai |
| CORAM: | Amit Shukla (JM), N. K. Billaiya (AM) |
| SECTION(S): | 29, 37(1), 40(a)(ia) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | business loss, TDS disallowance |
| COUNSEL: | N. C. Jain |
| DATE: | February 18, 2015 (Date of pronouncement) |
| DATE: | March 16, 2015 (Date of publication) |
| AY: | 2008-09 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| (i) Mark-to-market loss on interest rate swap contracts is not a notional loss, (ii) Benefit against s. 40(a)(ia) disallowance conferred in Kotak Securities 340 ITR 333 (Bom) has to be extended to cases where ROI was filed pre-delivery of the verdict | |
The Hon’ble High Court further observed that in these circumstances if both the parties for nearly a decade proceeded on the footing that section 194J is not attracted, then in the assessment year in question, no fault can be found with the assessee in not deducting tax at source under section 194J of the Act and consequently, no action could be taken under section 40(a)(ia) of the Act. As the Return of income for the year under consideration was filed on 14/08/2009 and this decision of the Hon’ble was pronounced on 21/10/2011. Thus, the assessee had already filed the return of income and the time period for deducting tax at source was also lapsed. Considering these peculiar facts, in our considered opinion no disallowance on this account should be made for the year under consideration
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