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2014 (1) TMI 927 - ITAT MUMBAIInterest paid to parties not allowed u/s 40(a)(ia) for non deduction of TDS – Belated filing of non-deduction forms 15G/15H under Rule 29C – Held that:- The default for non-furnishing of the declarations to the CIT as prescribed may result in invoking penalty provisions u/s. 272A(2)(f), for which separate provision/ procedure was prescribed under the Act - once Form 15G/Form 15H was received by the person responsible for deducting tax, there is no liability to deduct tax - Once there is no liability to deduct tax, it cannot be considered that tax is deductible at source under Chapter XVII-B as prescribed u/s. 40(a)(ia) - The provisions of section 40(a)(ia) can only be invoked in a case where tax is deductible at source and such tax has not been deducted or after deduction has not been paid - No such default occurred in the present case - the provisions of section 40(a)(ia) are not - Both the Assessing Officer and CIT(A) erred in considering that non-filing of form 15H invites disallowance u/s. 40(a)(ia) – Relying upon Vipin P. Mehta vs. Income Tax Officer 2011 (5) TMI 503 - ITAT MUMBAI] - thus, there is no need to deduct tax at source and there is no default committed by the assessee - Non filing or delayed filing of such forms can not result in disallowance u/s 40(a)(ia) – Decided in favour of Assessee.
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