9911796707
TMI Blog2024 (11) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... out considering our 15G/15H collected from the respective depositors. 2. That the learned CIT (Appeals) agreed that the assessee had collected required form 15H/15G from the respective depositors but erred by not appreciating the same and disallow us the benefit of section 197A by sustaining the addition made by ld. AO on the basis of non-delivering the same 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 deliv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cting interest. The ld. Assessing Officer required the assessee to furnish complete details of interest paid above Rs. 10,000/- and the assessee furnished these details in respect of all 21 branches of the bank. It claimed that it had obtained declaration in Forms 15G/15H from the depositors in each and every case. However, the ld. AO held that the assessee could not substantiate 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 amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the customer under section 197A(1A). However, the ld. Assessing Officer and the ld. CIT(A) erred by not appreciating that the branches had obtained Forms 15G/15H as applicable and only because the assessee had not delivered the same to the prescribed authority under section 197A(2), they had rejected the fact of obtaining these Forms 15G/15H and made an addition against 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these forms may be manipulated. It is observed that the ld. Assessing Officer 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 vs. ACIT-Tds Circle, Hubli in ITA No. 1854/Bang/2016, the Hon'ble ITAT 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(1A) of the Act. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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