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TMI Blog2022 (1) TMI 1087X X X X Extracts X X X X X X X X Extracts X X X X ..... earned CIT (A) but no benefit was extended by the learned CIT (A) to the assessee on the ground that the submission of the assessee was without the supporting evidence. Even before us, we do not find any documents supporting the contention of the assessee except the submission as discussed in the preceding paragraph. Onus upon the assessee to furnish the CA certificates that the payee has paid necessary taxes on income credited by the assessee. However in the case on hand the assessee has submitted PAN of the payee and claimed that the payee has filed income tax return for the year dated 13-07-2009 and declared gross total income of ₹ 1,71,031/- before claiming deduction under section 80C and 80D for ₹ 56,230/- which includes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed under s. 201(1) 201(1A) of the Income Tax Act, 1961 (here-in-after referred to as the Act ) relevant to the Assessment Year 2009-10. 2. When the matter was called for hearing it was noticed that there was none appeared on behalf of the assessee despite the fact that case has been listed for hearing for more than 3 times. On the previous occasion the notice intimating the date of hearing was sent to the address of the assessee which was duly served. It is the trite law that assessee after filing the appeal should be vigilant enough to prosecute the same. But, we find that the assessee is not serious in pursuing the appeal filed by it. In the absence of any co-operation from the side of the assessee, we don t find any reason to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee in default under the provisions of section 201(1)/201 (1A) of the Act on account of non-deduction of TDS under the provisions of section 194A of the Act. 5. The assessee in the present case is a bank and accepting deposits from the public and paying interest to them on such deposits. The assessee in the year under consideration has paid interest to one of the party namely Shri Bipin N Shah amounting to ₹ 1,71,031/- without deducting the TDS under the provisions of section 194A of the Act. It was contended by the assessee that it has received form 15H/15G from the party and therefore no TDS was deducted in pursuance to the provisions specified under section 197A(1A) of the Act. 5.1 However, the AO was of the view that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rieved by the order of learned CIT (A) the assessee is in appeal before us. 9. The assessee before us has filed the statement of facts along with the memo of appeal. It was submitted that the payee has furnished his return of income declaring an income of ₹ 1,43,320/- after claiming the deduction under section 80C/80D of the Act for ₹ 56,230/-. The return of income was filed by the payee after considering the amount of interest received from the assessee. Thus, income declared by the payee was less than the basic exemption limit provided under the Act i.e. ₹ 1,50,000/- only. Accordingly it was prayed in the statement of facts that the assessee should not be treated as assessee in default in the manner provided under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich includes interest income credited by assessee bank. The claim of the assessee bank was very much verifiable by the revenue authority from the income tax record of the payee. However none of the authorities below verified the genuineness of the claim of the assessee. We are of the view that the proviso to section 201(1) in beneficial in nature hence the same should be applied in liberal manner. In the case on hand the payee to whom interest income was credited by the assessee bank is an individual and arguably declaring very nominal income which is below the taxable limit. Thus in our understanding the fact that weather the payee has included the interest income in return of income can be easily verified. 11.3 Therefore in view of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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