Assessee made payment of interest to NBFC without deducting any TDS. Consequently, the Ld. AO made disallowance u/s. 40(a)(ia). On appeal, the CIT(A) upheld the disallowance made. On further appeal, before the Hon’ble ITAT, the assessee filed additional evidence in the form of a certificate from a Chartered Accountant (‘CA’) as per the proviso to S. 201(1). In the said certificate, the assessee justified that the said payment made to NBFC was offered to tax by such NBFC as income and the due tax on the same was also paid by the NBFC. Hence the assessee contended that once the three conditions under proviso to S. 201(1) are satisfied, then no disallowance can be made. This contention of the assessee was also upheld by the Hon’ble Supreme Court in the case of M/s. Hindustan Coca Cola Beverages Pvt. Ltd. (CA NO.3765 of 2007 dated 16.08.2007). Thus, in view of the certificate of CA filed, the assessee was no longer to be considered as an assessee-in-default and the disallowance made was to be deleted. (AY. 2010-11)