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2020 (2) TMI 1558 - AT - Income TaxDeduction on provision for bad and doubtful debts u/s 36(1)(viia) - claim of deduction being 10% of Incremental Advances of rural branches and 7.5% of income was claimed for provision for doubtful debt - only reason for which the claim of the assessee is disallowed is because assessee has not made any provision in the books of accounts - HELD THAT:- CIT (Appeals) has failed to consider the fact that in the revised profit and loss account such claim was already made. Therefore, it is required to be considered by the lower authorities that when assessee has submitted the revised annual accounts which are duly approved by the AGM whether the assessee has satisfied the requirement of the provisions of Section 36(1)(viia) - As apparent from the record that annual accounts were revised on 26.02.2016, whereas the order was passed under Section 143(3) of the Act on 17.03.2016. Therefore, such accounts naturally could not have been before the Assessing Officer. CIT (Appeals) also did not consider the fact that whether such a revision of accounts is valid or not. In view of this we set aside the whole issue as per ground No. 1 of the appeal back to the file of the Assessing Officer to examine whether the assessee has made the provision correctly or not. TDS u/s 194A - Addition on interest paid on FDRs - assessee argued non examining Form No. 15G and 15H - assessee submitted that no tax is required to be deducted on fixed deposits made by agriculturists - HELD THAT:- As apparent from the orders that assessee did file Form No. 15G and 15H before the Assessing Officer though the same might not have been filed before the learned Commissioner of Income Tax, Muzaffar Nagar or might have been filed late - assessee has also stated that most of the fixed depositors are agriculturists and are having income below the taxable limit. Merely because the assessee did not file the requisite form before the learned CIT, Muzaffar Nagar, in time, it cannot be said that assessee has failed to deduct tax at source on such interest payment - without examining those Form No. 15G and 15H the Assessing Officer also could not have held that the assessee should have deducted tax at source on interest paid to such persons who have furnished Form No. 15H and 15G to the assessee. Without examining the facts, no disallowance can be made in the hands of the assessee. Furthermore the learned CIT (Appeals) also did not carry out such an exercise - we set asdide this ground of appeal that to the file of the Assessing Officer with a direction to the assessee to submit such Form No. 15H and 15G and prove before the Assessing Officer that no tax was required to be deducted on such sum. Ground allowed for statistical purposes.
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