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2014 (5) TMI 1041 - AT - Income TaxNon deduction of tds - demand raised under section 201(1) and interest under section 201(1A) - "assessees-in-default" for non-deduction of tax at source on the interest paid to the depositors - Held that:- A plain reading of section 197A(1A) shows that the said provision overrides the provisions of section 194A if the modalities prescribed in section 197A(1A) are complied with. The section further states that the person responsible for paying any income of the nature referred to in section 194 or section 194A or section 194K shall not deduct tax under any of the abovesaid sections in the case of a person, if such person furnishes a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner. Hence, it was contended by the learned authorised representative that the assessee cannot deduct tax at source, if the recipient of the interest amount furnishes declaration in the prescribed form. We have already noticed that the duplicate copies of declarations furnished by the depositors in Form 15H/15G are required to be filed with the Chief Commissioner or Commissioner. Under these circumstances, it is not clear as to how the Income-tax Officer (TDS) can reject those declarations furnished by the depositors. We notice that the tax authorities have not addressed these contentions also. Thus the Income- tax Officer (TDS) has passed the impugned orders without properly addressing the various contentions of the assessee. Accordingly, this matter requires fresh examination at the end of the Assessing Officer. Restore all the matters to the file of the Income-tax Officer (TDS) with the direction to examine all the issues afresh by duly considering various contentions urged by the assessee and take appropriate decision in accordance with the law. - Decided in favour of assessee for statistical purposes.
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