{"id":62878,"date":"2026-07-30T15:45:32","date_gmt":"2026-07-30T10:15:32","guid":{"rendered":"https:\/\/itatonline.org\/digest\/kolte-patil-developers-ltd-erstwhile-bellflower-properties-p-ltd-v-dy-cit-2025-130-itr-505-trib\/"},"modified":"2026-07-30T15:45:32","modified_gmt":"2026-07-30T10:15:32","slug":"kolte-patil-developers-ltd-erstwhile-bellflower-properties-p-ltd-v-dy-cit-2025-130-itr-505-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/kolte-patil-developers-ltd-erstwhile-bellflower-properties-p-ltd-v-dy-cit-2025-130-itr-505-trib\/","title":{"rendered":"Kolte Patil Developers Ltd. (erstwhile Bellflower Properties P. Ltd.) v. Dy. CIT (2025) 130 ITR 505 (Trib.)"},"content":{"rendered":"<p>The assessee paid compensation to a party for surrender of its rights in a property transaction. The Assessing Officer treated the payment as interest in substance and disallowed the expenditure under section 40(a)(ia) for failure to deduct tax at source. The Tribunal held that the payment was compensation for surrender of rights and not interest within the meaning of the Act. Since the payment did not attract deduction of tax at source under section 194A, the provisions of section 40(a)(ia) were not applicable. The disallowance was, therefore, deleted. (AY. 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 40(a)(ia): Amounts not deductible-Deduction at source-Compensation paid for surrender of rights is not interest-Disallowance is not justified. [S. 194A] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62878","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gma","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=62878"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62878\/revisions"}],"predecessor-version":[{"id":62879,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62878\/revisions\/62879"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}