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2016 (12) TMI 1358 - AT - Income TaxRevision u/s 263 - non deduction of TDS u/s 194A on interest expenditure - Held that:- A.O. has examined the issue of disallowance u/s 40(a)(ia) of the Act, towards interest payments at the time of assessment. The assessee has furnished details of declarations received from the recipient of interest and the A.O. after satisfied with the explanations offered by the assessee has chosen to accept interest payment, therefore, the CIT was incorrect in holding that the A.O. has not examined the issue at the time of assessment proceedings. In the present case on hand, on perusal of the materials available on record, we find that the recipients have furnished declarations in form 15G/15H before the due date of payment of TDS to the credit of the Government account. Since, the recipient has furnished statutory forms in form 15G/15H, the assessee need not to deduct TDS u/s 194A of the Act, consequently, no disallowance can be made u/s 40(a)(ia) of the Act, accordingly, there is no prejudice is caused to the interest of revenue. Since, the assessment order passed by the A.O. is neither erroneous nor prejudicial to the interest of the revenue, the CIT was incorrect in assuming jurisdiction u/s 263 of the Act. Therefore, we set aside the order passed by the CIT u/s 263 of the Act and restore the assessment order passed by the A.O. u/s 143(3) of the Act. - Decided in favour of assessee
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