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2011 (5) TMI 503 - AT - Income TaxTDS - Interest - Merely because there is a failure on the part of the assessee to submit the declarations to the income-tax department within the time-limit, it cannot be said that the assessee did not have declarations with him at the time when he paid the interest to the payees - That would be a separate matter and separate proof and evidence is required to show that even when the assessee paid the interest, he did not have the declarations from the payees with him and therefore he ought to have deducted the tax from the payment - No such evidence or proof has been brought by the department - Hence, accept the assessee's claim that since he had the declarations of the payees in the prescribed form before him at the time when the interest was paid, he was not liable to deduct tax therefrom under section 194A - If he was not liable to deduct tax, section 40(a)(ia) is not attracted - There is no other ground taken by the Income-tax authorities to disallow the interest - Therefore accept the assessee's appeal and delete the disallowance of interest
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