Assessee is insolvent & in liqidation. Assessee has debited interest expenses without deducting TDS. Three years have passed out in liquidation proceeding. AO have disallowed the interest expenses by invoking section 40(a)(ia). Whether it is correct.
If it is correct my questtion is that the lenders of money will not get back even their fully principal amount. There was no income in the form of interest. If assessee deduct TDS during liquidity proceeding & deposit with department, assessee will not be able to pay even principal then who will be the claimant of TDS. |
