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2014 (3) TMI 539 - AT - Income TaxDemand u/s 201(1) and 201(1A) with interest for Non-deduction of TDS – Though the assessee bank had obtained Form No. 15G and Form No. 15H but the same was not submitted to the jurisdictional Commissioner of Income Tax within due time. - Held that:- Apart from sub-section (1A) of section 197A which merely requires a declaration to be filed by the payee of the interest and once it is filed, the payer of the interest has no choice except to desist from deducting tax at source from the interest paid – the provision does not impose any obligation on the payer to find out the truth of the declaration filed by the payee – the decision in Vipin P. Mehta Versus Income-tax Officer, Ward-24(3) (4), Mumbai [2011 (5) TMI 503 - ITAT MUMBAI] followed - if the assessee has delayed the filing of declaration with the office of the jurisdictional C.I.T., within the time limit specified in sub-section (2) of Section 197A, that is a distinct omission or default for which a penalty is prescribed. The contention of the assessee is accepted that since the assessee Bank had the declaration of the payees in the prescribed form with it at the time when the interest was paid to the respective customers, the assessee cannot be held to be liable to deduct tax therefrom u/s 194A of the Act - if the assessee Bank was not liable to deduct tax at the time of payment of interest, then section 40(a)(ia) of the Act is not attracted and the assessee cannot be held liable to pay tax as assessee in default and interest - for non-filing of Form No. 15G and 15H within the prescribed time, there is a provision of penalty u/s 272A(2)(f) of the Act which is not a case of the department in the present appeal – thus, the order set aside – Decided in favour of Assessee.
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