9911796707
TMI Blog2023 (7) TMI 1446X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. Assessing Officer was required to specifically make reference to those details. Assessee has filed paper books in each year in A.Ys. 2016-17, 2017-18 and 2018-19 whereby it has tabulated the name of the person, to whom interest was paid, PAN, status and other details. Therefore, it is also pertinent to note that it is a District Central Cooperative Bank, who has maintained the details properly. Therefore, we are of the view that the impugned orders are not sustainable because the authorities below have failed to record specific finding of fact based on the documents submitted by the assessee in the Form 15G and 15H. Both the authorities have failed to comprehend that if the Forms 15G and 15H are partly submitted, then also the assessee will not be entitled for exclusion of that amount from the gross interest payment for which it can be held as the assessee in default. If this logic of the Revenue is accepted, then if one Form is not submitted then the assessee could be considered as an assessee in default for the whole interest payment, which was paid after collecting these forms properly. If the assessee is able to submit the details with respect to part of the amount paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of Rs.10,000/- to the tune of Rs.16,13,44,802/- on deposits made by the customers on which TDS was applicable but the deductor-assessee has failed to deduct the TDS. Accordingly, he issued a show-cause notice and assessee gave its explanation. 5. In A.Y. 2017-18, the ld. Assessing Officer has observed that assessee-Bank has paid the interest of Rs.16,70,81,472/- on which it was required to deduct TDS while making payment of interest to the customers. 6. In A.Y. 2018-19, the assessee has made the payment of interest to the tune of Rs.12,32,38,118/- on deposits made by the customers on which TDS was applicable, but the assessee has failed to make the TDS. 7. The common stand of the assessee qua the show-cause notice of the A.O. was that out of the total amount pointed out by the ld. Assessing Officer, a major portion was of that sum ,on which TDS provision was not applicable. The cases where TDS provisions were applicable the assessee has obtained Forms No. 15G 15H from the customers and thereafter did not deduct the TDS. The assessee has submitted all these details to the ld. Assessing Officer but the ld. Assessing Officer has rejected this contention of the assessee for two reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 201 of the I.T Act. The first one is related to obtain Form no. 15G from the deductees. Thus, the question arises that mere obtaining 15G form from the dedutees can absolve the deductor to be treated as assessee in default . 5.3. The Income Tax Act provides no deduction to be made in certain cases u/s 197A which is as under: (1) Notwithstanding anything contained in section 194 or section 194EE, no deduction of tax shall be made under any of the said sections in the case of an individual, who is resident in India, if such individual furnishes to the person responsible for paying any income of the nature referred to in section 194 or, as the case may be, section 194EE, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil. (IA) Notwithstanding anything contained in section 192A or section 193 or section 194Aor section 194D or section 194DA or section 194-1 or section 194K, no deduction of tax shall be made under any of the said sections in the case of a person (not being a comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notwithstanding anything contained in this Chapter, no deduction of tax shall be made from any payment to any person for, or on behalf of, the New Pension System Trust referred to in clause (44) of section 10. (1F) Notwithstanding anything contained in this Chapter, no deduction of tax shall be made, or deduction of tax shall be made at such lower rate, from such payment to such person or class of persons, including institution, association or body or class of institutions, associations or bodies, as may be notified by the Central Government in the Official Gazette, in this behalf.] (2) The person responsible for paying any income of the nature referred to in sub-section (1) or sub- section (1A) or sub-section (1C) shall deliver or cause to be delivered to the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner one copy of the declaration referred to in sub-section (1) or sub-section (1A) or sub-section (1C) on or before the seventh day of the month next following the month in which the declaration is furnished to him. 5.4. It is evident from the above that no deduction of tax shall be made in case of an individual, if such individual furni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the provision by only collecting form no.15G. 5.6. The second is related to verification of return of the deductee by the AO as it was claimed by the appellant that all deductee had declared the interest income in their return and paid taxes. The claim of the assessee is based on a proviso mentioned u/s 201(1) of the I. T Act. The same proviso is reproduced as under: (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 sub-section (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 company, who fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a payee or on the sum credited to the account of a payee shall not be deemed to be an assessee in default in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such tax was deducted. Interest shall be levied at 1.5% for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax was actually remitted to the credit of the Government. 1. Further, subject to the fulfillment of conditions mentioned in proviso of section 201(1) of the I. T Act, interest shall be payable from the date on which such tax was deductible to the date of furnishing of return of income by such payee. Interest in such a case will be levied at 1% for every month or part of the month. 5.11. In the view of the above provision, the AO is directed to verify and calculate default period for levy of interest u/s 201(1 A) of the I. T. Act, 1961. In the assessment order, it is noted that the appellant has deposited a sum of Rs.69,11,617/-. Thus, the AO is directed to verify the claim of TDS already paid by the deductor assessee and allow the credit of the same, if not given in the 201(1) and 201(1 A) order. The ground no. 4 is allowed. 5.12. Others two grounds nos. 5 and 6 are in general in nature and therefore no adjudication required. The appeal of the assessee is partly allowed . 9. Before us, ld. Counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d at page 64 of the paper book. But thereafter, due to technical problem, the attachments uploaded, could not be opened. The assesse bank was unable to upload it again even though it had physical copies of Form 15G 15H, which contains details of the investors, the amount of sum given on deposit, the date of investment and period of such investments and most important in the declaration given by the depositors of not having taxable income. Copies of these Forms 15G 15H were placed before the ld. CIT(A) also but he ignored the physical copies and pressed upon online filing of the same. 8. It is an admitted fact that the assessee has procured the Form 15G 15H, from all those depositors who have stated on the Form that tax should not be deducted on the interest paid/credited to them as their income is below taxable limit. Such forms are filed as per provisions of Income Tax Act and Income Tax Rules. Once such declaration is received by the bank, then, it is not required to deduct tax at source and in case any inconsistency is found in the declaration given by such depositors, then the remedy is available under the Act with the concerned officer to take action against such declarants. 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r receiving the physical copies of Form 15G 15H, it should not be considered as an assessee in default. Therefore, we delete the demand raised by the ld. AO for nondeduction of tax at source u/s 194A of the Act as well as interest levied thereon for AY 2016-17 and 2017-18 for non-submission of Form 15G 15H, and allow the grounds raised by the assessee. 11. In the result, both the appeals of the assessee are allowed . 12. On due consideration of the impugned orders of ld. CIT(Appeals) would reveal that it failed to record specific finding on the explanation of the assessee. The stand of the assessee from the very beginning was that out of the total interest payment worked out by the ld. Assessing Officer to the tune of Rs.16,13,44,802/-, interest amounting to Rs.4,07,56,170/-, it has obtained Forms 15G and 15H. To that extent, after verification, this amount ought to be reduced from the total amount computed by the Revenue. This factum has not been factually verified either by the ld. Assessing Officer or by the ld. CIT(Appeals). The finding of both the authorities is general in nature qua this aspect. The ld. Assessing Officer has observed that the assessee has not submitted comple ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
