9911796707
TMI Blog2010 (7) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities erred in disallowing an amount of ₹ 1,01,331 being the interest paid to creditors on 31st March, 2006 by invoking the provisions of s. 40(a)(ia) of the IT Act. 2. The facts of the case are that the AO disallowed a sum of ₹ 1,01,331 under s. 40(a)(ia) of the IT Act being the interest paid to following depositors : Sl. No. Name of the dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Hence, they submitted Form 15G to the assessee well in time i.e. on 30th March, 2006. The assessee has submitted the photostat copy of letter addressed to the AO dt. 18th April, 2006 which is placed at p. 6 of the paper book along with copy of Form 15G obtained from the depositors. The photostat copies of Form 15G in respect of depositors obtained are placed at paper book pp. 7 to 17 along with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid as the assessee obtained Form 15G from the depositors well in time. Thus the disallowance made by AO is quite arbitrary, unjustified and against the provisions of law. It is further submitted that if at all there was delay in submitting the Form No. 15G by the assessee. consequent of it submitting late would have followed but interest cannot be disallowed under the provisions of s. 40(a)(ia) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not be submitted within time stipulated in the Act. However, the same were available before the AO while framing the assessment order. Therefore, the Bench does not see any reason for disallowing the interest and thus the Bench reverses the order of the learned CIT(A) and directs to delete the addition of ₹ 1,01,331. Thus the appeal of the assessee is allowed. 7. In the result, the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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