आयकर अपीलीय अिधकरण, ’ए’ (cid:586)ायपीठ, चे(cid:580)ई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI (cid:373)ी एस.एस. िव(cid:695)ने(cid:361) रिव, (cid:586)ाियक सद(cid:735) एवं (cid:373)ी एस.आर. रगुनाथॎ, लेखा सद(cid:735) के सम(cid:407)

Before Shri S.S. Viswanethra Ravi, Judicial Member &

Shri S.R. Raghunatha, Accountant Member आयकर अपील सं./I.T.A. Nos.2855, 2856 & 2857/Chny/2024 िनधा(cid:330)रण वष(cid:330)/Assessment Years: 2007-08, 2009-10 & 2010-11 Venugoopal Subramaniyam Raja, Vs. The Deputy Commissioner of

40/41, Town High School Road, Income Tax, Kumbakonam 612 001, Tamil Nadu. Circle 2(1), Trichy.

[PAN:AAFPR5570F]

(अपीलाथ(cid:334)/Appellant) ((cid:366)(cid:529)थ(cid:334)/Respondent) अपीलाथ(cid:334) की ओर से / Appellant by : Shri R. Sivaraman, Advocate (cid:366)(cid:529)थ(cid:334) की ओर से/Respondent by : Shri C. Sivakumar, Addl. CIT सुनवाई की तारीख/ Date of hearing : 20.08.2025 घोषणा की तारीख /Date of Pronouncement : 21.08.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:

These three appeals filed by the assessee are directed against separate orders all dated 09.09.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi for the assessment years 2007-08, 2009-10 & 2010-11.

2. Since issues raised in these appeals are similar based on the same identical facts, with the consent of the both the parties, we proceed to hear the appeals together and pass consolidated order for the sake of convenience.

3. First, we shall take up appeal in ITA No. 2855/Chny/2024 for AY

2007-08 for adjudication.

4. The assessee raised 3 grounds of appeal, amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the disallowance of interest payment in the facts and circumstances of the case.

5. The assessee is a partner in M/s. Raja Holdings, Kumbakonam in his individual capacity and paid interest to RBS Coutts Bank Ltd., Singapore, which is having its Head Office in Switzerland, without deducting TDS. According to the Assessing Officer, the assessee neither deducted TDS from interest payment made to foreign bank nor filed undertaking with the remitting bank. In view of section 9 of the Act, which stipulates strictly about the taxability of income that arise or accrue in India and the interest payment made by the assessee is an income deemed to accrue or arise in India under section 9(1)(v)(c) of the Act and accordingly, the Assessing Officer disallowed the entire interest expenditure under section 40(a)(i) of the Act for violation of non-deduction of tax under section 195 of the Act for AY 2007-08. On appeal, the ld. CIT(A) confirmed the disallowance made by the Assessing Officer by following the order of this Tribunal in assessee’s own case for AY 2008-

09 and dismissed the appeal of the assessee and for ready reference, the relevant part at para 6 of the impugned order is reproduced herein below:

6. Decision

6.1 I have considered the contention of the appellant. The appellant has contested that the Hon'ble ITAT had misconceived that the appellant had sought exemption from TDS on the Ground that the payment falls under article 11(3) of DTAA with Switzerland. The appellant contested that he had never put such a plea neither before the Assessing Officer nor before the appellate fora. The appellant contested that the payment of interest falls under Article 11(1) of the DTAA with Switzerland.

6.2 It is seen from the order of the Hon’ble ITAT that the Hon’ble ITAT has taken due cognizance of article 11(1) and 11(2) of the DTAA between India and Switzerland The following finding of the Hon’ble ITAT is reproduced “In the above circumstances, in our considered view the interest in question was taxable in India though the rate of tax could not exceed 10% Therefore, in our view, the assessee was liable to deduct tax at source on the aforesaid payment of interest u/s

195 of the Act."

6.3 Hence, the Hon'ble ITAT has taken due cognizance of art