9911796707
TMI Blog2021 (5) TMI 627X X X X Extracts X X X X X X X X Extracts X X X X ..... filing the same before the ld. AO as no questions were received by the ld. AO regarding the same. Once Form No. 15G 15H are duly submitted by the assessee before the department, then assessee cannot be fastened with the disallowance u/s.40(a)(ia) of the Act for non-deduction of tax at source. However, these forms i.e. Form 15G 15H have not been subjected to verification by the ld. AO. Hence, in the interest of justice and fair play, we deem it fit and appropriate to remand this issue to the file of the ld. AO for examining the Form 15G 15H submitted by the assessee and decide the issue of disallowance of interest on unsecured loans afresh in accordance with law. The ld. AO is also directed to give a specific finding with regard to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laring total income of ₹ 1,35,26,250/-. In the assessment, the ld. AO made disallowance of interest paid on unsecured loans in the sum of ₹ 2,70,000/- among other additions/disallowances. We find that assessee had stated that it had borrowed funds from the relatives of the shareholders of the assessee company for meeting its working capital requirements on which interest @12% per annum was paid. It was duly submitted that the funds raised in the earlier year and utilised for the purpose of business. In the year in which the borrowings were raised and utilised, the same were accepted by the Revenue in scrutiny assessment proceedings for A.Y.2010-11. During this year interest was paid on such loans. The assessee also pleaded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity before the ld. AO to make all the submissions and accordingly, denied the admission of additional evidences. It was also pleaded by the assessee before the ld. CIT(A) that in view to second proviso to Section 40(a)(ia) r.w.s. 201, the payees had duly paid taxes including the interest income received from the assessee and hence, no disallowance of interest u/s.40(a)(ia) of the Act could be made in the hands of the assessee. This submission of the assessee was rejected by the ld. CIT(A) by stating that the said second proviso to Section 40(a)(ia) was introduced only w.e.f. 01/07//2012 and cannot be made applicable for A.Y.2011-12. We find that the additional evidences filed by the assessee containing Form15G 15H ought to have been admit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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