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TMI Blog2010 (2) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... Charging of interest u/s 234B of the Act is mandatory and consequential in nature and, thus, this ground is dismissed as not maintainable - In the result, the assessee's appeal is dismissed - ITA No. 1180/Bang./2009 - - - Dated:- 12-2-2010 - SHRI K.P.T. THANGAL, VICE PRESIDENT AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER Appellant by : Shri Manoj D. Pukhale Respondent by : Smt. Jacinta Zimik Vashai ORDER Per: A Mohan Alankamony: This appeal of the assessee is directed against the order of the Ld. CiT(A), Hubli in ITA No; 120/CIT(A) HBL/08-09 dated: 6.11.2009 for the assessment year 2006-07. 2. The assessee had originally raised twelve grounds. Subsequently, the Ld. A R in his communication dated: 1/2/2010 h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d document was neither produced before the AO nor before the first appellate authority. 4. The issue, in brief, is that the assessee, an individual, trades in iron and steel business. During the course of proceedings for the assessment year in dispute, the AO, while perusing the books of accounts, came across that the assessee had paid Rs.14.55 lakhs to various depositors for which no TDS was effected under the provisions of S.194A of the Act. In compliance with the AO's query as to why such an expenditure claimed should not be denied by invoking the provisions of s.40(a)(ia) of the Act, the assessee came up with a reasoning that in case of certain payees, applications for No TDS/lower TDS made by some of the payees in F No. 13 to their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in his submissions for the year under appeal." 6.1. Drawing strength and also extensively quoting from the finding of the Hon'ble Tribunal in the case of J.G.Khatawar Co. [ITA NO:881/B/08 dt: 24.7.2009], the CIT(A) went on further to observe that - "6. In the case on hand Form No.15G have not been furnished by the parties. Rather the applications made by the payees as claimed by the appellant were never disposed off which makes it abundantly clear that the appellant was not in receipt of form No.15G at the time of payment of interest, the obligation therefore was cast on the appellant to deduct the tax at source on the payment of interest to the parties..................................................Whereas in the case of pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken a judicious view in disallowing the expenses claimed by way of interest by resorting to the provisions of s.40(a)(ia) which has been rightly upheld by the first appellate authority. In view of the above, it was pleaded that no interference is called for at this stage. 8. We have carefully considered the rival submissions, perused the relevant records and also the paper book furnished by the Ld. A.R. 8.1. After due consideration of the assessee's application under rule 18(4) of Appellate Tribunal Rules, 1963, the additional evidence sought to be produced before this Bench is admitted and the registry was directed to take on record. 8.2. Precisely, the issue for consideration is - Whether the assessee was NOT obliged to deduct ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dispute) and concluded that the provisions of s.40(a)(ia) of Act are explicitly applicable to the said case. 8.2.5 During the course of hearing, the Ld. AR sought to distinguish the above finding with the case on hand on the ground that the Hon'ble Tribunal dealt with an issue which-relates to declaration by a person in Form No.15G. 8.2.6. The ratio of finding recorded in the case of J.G.Khatawar Co. is squarely applicable to the issue on hand. 8.2.7. We have also duly perused the fresh evidence produced by way of an application u/r 18(4) of I.T.Rules, 1963. As pointed out by S.D.Ostawal, Chartered Accountant, (on page 2) 7. In a case where depositor's income is not exceeding chargeable limits then, as per 197A, no TDS shall be mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee's stand that the payees have approached the AOs concerned for issuance of No TDS/lower TDS etc., authorization which they have failed to obtain etc., doesn't hold water. Further contention of the assessee that TDS obligation was not was required, considering the computation of income shown in each case where F No.13 application was made to the AO concerned for authorization, in our considered view, to put it gently, the assessee had over-stepped in his perception which he was not obliged to do so under any provisions of I.T.Act. 8.2.11. In an overall consideration of the facts and circumstances of the issue and in conformity with the finding of the Hon'ble Tribunal referred supra, the Ld. CIT(A) was justified in confirming the stand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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