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TMI Blog2021 (2) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... are common and both the appeals have been heard together, we dispose of both these appeals by this consolidated order for the sake of convenience. Since the issues are common the impugned order of AY 2014-15 is taken as the lead case and the result of which will be followed for the AY 2015- 15. 2. At the outset, we note that there is a delay of 224 days and 202 days in respect of AYs 2014-15 and 2015-16 respectively. The assessee has filed condonation petition along with affidavit. We have gone through the same and find the reasons given therein that there was no deliberate action on the part of assessee not to have filed the appeals on time andthe Ld. DR after having gone through the contents of the application for condonation of delay do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mers have filed Form 15G as provided u/s. 197A(1)/1A and read with Rule 29C,however, the AO was of the opinion that since the interest amount exceeded the threshold limit of taxable income, the AO declared assessee bank as an assessee in default and noted that since those customers have not furnished the certificate from an accountant as per section 201(1) of the Act, the AO passed the order by raising a demand of Rs. 1,71,540/- u/s. 201(1)/201(1A) of the Act. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A), who dismissed the appeal of the assessee citing the reasons that none appeared before him on behalf of the assessee and by this non-attendance, he was of the opinion that assessee was not interested in pursuing the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it would be proper to refer to section 201 of the Act, relevant portion of which is reproduced as under: "Consequences of failure to deduct or pay. 201. [(1) Where any person, including the principal officer of a company( a) who is required to deduct any sum in accordance with the provisions of this Act; or (b) referred to in subsection (1A) of section 192, being an employer, does not deduct, or does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, then, such person, shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of such tax: [Provided that any person, including the principal officer of a com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limit exempted for taxation then this provision does not apply. However, we note that the first proviso to section 201 of the Act has been brought in by Finance Act, 2012 w.e.f. 01.07.2012 which has inserted the first proviso an amendment that if the payer of income (assessee in this case) is able to bring to the notice of the AO that the payee (recipient of income) has already paid tax on the amount received from the payer(assessee bank) then the assessee bank/payer cannot be treated as an assessee in default. Consequently, department is precluded from recovering tax from the payer(assessee bank) on the same income by treating the payer to be an assessee in default for shortfall in its amount of tax deducted at source. For this propositi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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