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TMI Blog2018 (10) TMI 2011X X X X Extracts X X X X X X X X Extracts X X X X ..... Per N.V. Vasudevan, Vice President This is an appeal filed by the assessee against the order dated 28.6.2018 of the CIT(Appeals)-10, Bengaluru relating to assessment year 2014-15. 2. The Assessee is an individual. The Assessee paid interest of Rs.3,10,156 (Rs.2,97,146/-) on car loan availed from TATA Capital. The Assessee was obliged to deduct tax at source on payment of interest. Since the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd furnished the certificate to the above effect to the accountant in Form No.26A, then the assessee cannot be deemed to be 'an assessee in default' u/s 201(1) of the Act and no disallowance u/s 40(a)(ia) of the Act should be made. The assessee filed certificate in Form No.26A as required by the proviso to section 201(1) of the Act and prayed that the additions made by the AO may be deleted. 4. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e payment from the assessee has taken into account the sum received from an assessee on which no tax had been deducted at source for computing his income in such return of income. The proviso to section 201(1) of the Act inserted by the Finance Act 2012 w.e.f. 01.07.2012 reads as follows :- "Provided that any person, including the principal officer of a company, who fails to deduct the whole or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but is not deemed to be an assessee in default under the first proviso to sub-section (1) of section 201, then, for the purpose of this sub-clause, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee referred to in the said proviso." 6. In the present case, the assessee has filed a certificate in Form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs to only prescription of particular form and does not authorise laying down any further condition to be satisfied to escape the rigours of Sec.201(1) of the Act. Its fundamental that Rules cannot override the Act. 7. I am therefore of the view that the disallowance u/s.40(a)(ia) of the Act, in the present case cannot be sustained and the same is directed to be deleted. 8. In the result, the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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