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TMI Blog2016 (2) TMI 1361X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the assessee to forward the Form 15H to the respective Commissioners. At the best, it can be said that there was a delay on the part of the respective depositors in filing Form 15H. When the recipients of the interest are not liable for taxation under the Income- tax Act, 1961 or they have filed the return of income and paid the taxes on the interest income, naturally, the assessee is not liable to pay the tax deducted u/s 201 of the Act. When the recipients have no liability to pay tax, the question of payment of interest does not arise for consideration. As observed by the CIT(A), it has to be verified whether the recipients had paid the taxes if at all they are liable for taxation. It is also to be verified whether the rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found that in respect of 19 depositors, the assessee has paid interest exceeding ₹ 10,000/- and deducted tax. However, after receiving Form 15G/15H, the deductor bank made a reversal entry in the books of account and the tax deducted was not deposited to the Government account. The assessee explained before the Assessing Officer that the depositors are senior citizens and they filed Form 15H belatedly after the tax was deducted on the interest payment. Since the tax was not deductible in view of Form 15H filed by the respective senior citizens, the Assessing Officer is not justified in levying interest u/s 201(1A) of the Act. When the matter was carried before the CIT(A), he confirmed the order of the Assessing Officer on the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest file Form 15H declaring that their income does not exceed the taxable limit then the assessee need not deduct tax at all. In this case, according to the ld. DR, Form 15H was not filed at the time of either payment of interest or credit of interest, therefore, the assessee has rightly deducted tax. After receiving Form 15H belatedly, the assessee refunded the tax deducted by reversing the entries. This amounts to refund of tax deducted by the assessee-bank. According to the ld. DR, there is no provision in the Income-tax Act, 1961 to refund the tax deducted by the deductor. Therefore, the CIT(A) has rightly directed the assessee to remit the tax deducted and levied interest u/s 201(1A) of the Act. 5. We have considered the rival sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Commissioners. At the best, it can be said that there was a delay on the part of the respective depositors in filing Form 15H. When the recipients of the interest are not liable for taxation under the Income- tax Act, 1961 or they have filed the return of income and paid the taxes on the interest income, naturally, the assessee is not liable to pay the tax deducted u/s 201 of the Act. When the recipients have no liability to pay tax, the question of payment of interest does not arise for consideration. However, as observed by the CIT(A), it has to be verified whether the recipients had paid the taxes if at all they are liable for taxation. It is also to be verified whether the recipients have any taxable income in the light of Form 15H fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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