9911796707
TMI Blog2017 (9) TMI 1908X X X X Extracts X X X X X X X X Extracts X X X X ..... he CIT(A) for both asst. years 2011-12 and 201213 rejecting the assessee's claims which are presently before us for consideration, cannot be sustained in view of the observations by the ld CIT(A) of the lacuna and shortcomings of the AO in carrying out proper verification in the TDS made on interest payments. We, therefore, in the interest of equity and justice, set aside the impugned orders of the ld CIT(A) for asst. years 2011-12 and 2012-13 and restore the matter to the file of the AO for denovo adjudication of this matter, with the directions to verify the assessee's TDS liability branch wise and deductee wise details of interest payments on the point of availability of Form No.15G/15H only in respect of cases when such Forms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest supported by Form No.15G/15H is liable for TDS. It is the appellant's contention that once the branch managers obtain Form-15G/H from the depositors, the liability to deduct TDS ceases. This view is supported by the decision of Mumbai Bench of the Tribunal in the case of Karwart Steel Traders. 4. The learned Commissioner (A) ought to have appreciated that there was no obligation on the part of the appellant to deduct tax at source by applying the provisions of Sec.194A of the Act and consequently the provisions of Sec.40 (a)(ia) of the Act were not applicable to justify the disallowance as made by him. 5. The learned Commissioner (A) erred in upholding the disallowance even though when the expenditure claimed was supported by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities and the order of the Tribunal in assessee s own case for the AYs 2011-12 201213, copy of which is placed on record, we find that the impugned issue is squarely covered by the order of the Tribunal in assessee s own case. The relevant observations of the Tribunal is extracted hereunder for the sake of reference:- 3.2 We have heard rival contentions of the Ld AR for the assessee in support of the grounds raised and the Id DR in support of the impugned orders of the ld CIT(A) for both asst. years 2011-12 2012-13. 13. The grounds raised (Supra) are in respect of the treatment of the assessee by the authorities below as an assessee in default u/s 201(1) of the Act for failure on its part to deduct tax at source on interest p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etting barred to complete the TDS verification process and to pass the order u/s 201(1)/201(1A) of the Act, the AO cannot wait for information and passed the order u/s 201(1)/201(1A) of the Act. It can be seen that this has become the assessee's regular practice for not producing information in time stating the practical problems of the assessee bank for collecting the information from all its branches. It is assessee's duty to comply with the TDS provisions and to keep the information ready which is mandatorily to be maintained as per the TDS provisions. Whenever jurisdictional AO calls for information for TDS verification it is the assessee's duty to co-operate and provide the information viz complete particulars of interest p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rders of the AO stating that the assessee is in the regular practice of not providing information required for TDS verification before the AO and since the matter was getting barred by limitation, the AO's action in passing the orders u/s 201(1)/201(1A) of the Act was upheld. In our considered view on an appraisal of the material on record, we find that the factual situation on the identical issue prevailing in the asst. year 2010-11, is similar to that prevailing in the asst. years 2011-12 and 2012-13, i.e the years under consideration before us; where the AO was directed by CIT(A) to verify and examine the issue afresh and consider the assessee's claim after affording the assessee adequate opportunity of being heard. In the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmissions required in this regard. Consequently, the assessee's grounds are treated as allowed for statistical purposes. 5. Since the Tribunal has taken a particular view in a similar set of facts, we find no reason to take a contrary view in this appeal. Accordingly, following the order of the Tribunal, we set aside the order of CIT(Appeals) and restore the matter to the file of the Assessing Officer with a direction to readjudicate the matter de novo after affording the assessee adequate opportunity of being heard. The assessee is also directed to extend all sorts of cooperation to the department. Accordingly, the appeal of the assessee stands allowed for statistical purposes. Pronounced in the open court on this 27th day of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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