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2016 (2) TMI 1361 - AT - Income TaxTDS u/s 194A - reversal of TDS deducted on submission of relevant Forms - As per revenue Form 15H was not filed at the time of either payment of interest or credit of interest - According to the ld. DR, there is no provision in the Income-tax Act, 1961 to refund the tax deducted by the deductor - assessee claims that it received Form 15H from the respective depositors and accordingly, the tax deducted was credited to the respective accounts by making a reversal entry - HELD THAT:- Before the due date for depositing of the funds the assessee has received Form 15H, therefore, there was a statutory obligation on the part of the assessee to forward the Form 15H to the respective Commissioners. At the best, it can be said that there was a delay on the part of the respective depositors in filing Form 15H. When the recipients of the interest are not liable for taxation under the Income- tax Act, 1961 or they have filed the return of income and paid the taxes on the interest income, naturally, the assessee is not liable to pay the tax deducted u/s 201 of the Act. When the recipients have no liability to pay tax, the question of payment of interest does not arise for consideration. As observed by the CIT(A), it has to be verified whether the recipients had paid the taxes if at all they are liable for taxation. It is also to be verified whether the recipients have any taxable income in the light of Form 15H filed before the assessee. Accordingly, the orders of the lower authorities are modified and the AO is directed to examine whether the recipients have any taxable income or not. If they have taxable income it also needs to be verified whether they have paid taxes on the interest paid by the assessee and thereafter, the Assessing Officer shall decide the matter in the light of the observation made by this Tribunal in this order. Appeal of the assessee is partly allowed.
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