9911796707
TMI Blog2024 (11) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... ve refused to consider this and the ld. CIT(A) has gone on to hold that these forms may be manipulated. It is observed that the AO has not examined or verified any of the Forms 15G/15H and therefore, such a conclusion, without examination, is not warranted. In the case of The Karur Vysya Bank Limited, Bellary [ 2017 (9) TMI 829 - ITAT BANGALORE] referred to various judgments wherein it had been held that wherever there is any irregularity in the submission of forms for non-deduction of tax at source, the proper course of action is for the ld. Assessing Officer to verify the correctness of the forms and if the forms are found to be correct, the assessee cannot be held to be in default and no demand can be raised under section 201(1) and 201( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me to the prescribed authority under section 197A(2). 3. That the assessee relied on the similar case law in ITA No.1854/Bang/2016 The Karur Vysya Bank Limited, ... vs Acit- Tds Circle, Hubli on 9 August, 2017 paid the interest on term deposits without deducting TDS on the basis of Form 15G/15H collected from the respective bank customers under section 197A (1A) however failed to deliver the same to the prescribed authority under section 197A(2). In the mentioned case law the appeal of assessee was allowed for statistical purposes as per para 9 of the order: Turning to the facts of the case, we find that undisputedly assessee has submitted the Forms 15G/15H before the AO, but it was not considered on account of its non-submission in time be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stantiate its claim as to how these Forms 15G/15H had been procured and how and when these had been sent to the jurisdictional Commissioner / Chief Commissioner of Income Tax. Therefore, he rejected the plea of the assessee and, in view of the fact that the assessee had not deducted tax at source on these interest payments, he disallowed a sum of such interest payments amounting to Rs. 1,01,60,707/- under section 40(a)(ia) of the Income Tax Act. 3. Aggrieved with the said order, the assessee went in appeal before the ld. CIT(A). Before the ld. CIT(A), it was submitted that all the branches of the bank were situated in remote rural areas and required Forms 15G/15H from the depositors for non-deduction had been collected in each case. However ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee under section 40(a)(ia). The learned AR, Shri. B.P. Yadav, submitted that the case of the assessee was covered by the judgment of Hon ble ITAT in the case of The Karur Vysya Bank Limited, Bellary vs. ACIT-Tds Circle, Hubli in ITA No. 1854/Bang/2016. It was pointed out that in the said case, the Forms 15G/15H were produced before the ld. Assessing Officer and the ld. CIT(A), but were not considered by either because of their non-submission in time before the jurisdictional Commissioner of Income Tax, resulting in the AO passing an order under section 201(1) and 201(1A) of the Act against that assessee. The Hon ble Tribunal held that since the assessee had filed the forms, the lower authorities should have examined the same. It, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that wherever there is any irregularity in the submission of forms for non-deduction of tax at source, the proper course of action is for the ld. Assessing Officer to verify the correctness of the forms and if the forms are found to be correct, the assessee cannot be held to be in default and no demand can be raised under section 201(1) and 201(1A) of the Act. The cases referred to by the ld. ITAT in coming to such a conclusion, read as under:- 1. DCIT v. Vijaya Bank, 2014 (11) TMI 717-1TAT Vishakapatnam. 2. Narasu's Spinning Mills v. ACIT, 2015 (12) TMI 1553 - ITAT Chennai. 3. Malineni Babulu (HUF) v. ITO, 2015 (8) TMI 705 - ITAT Hyd. 4. Vijaya Bank v. ITO, 2014 (3) TMI 539-ITAT Del 5. DCIT (TDS) v. Jai Prakash Associates Ltd., 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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