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2020 (1) TMI 995 - AT - Income TaxDeduction on provision for bad and doubtful debts u/s.36(1)((vii) as well as U/s.36(1)(viia) - HELD THAT:- As decided in ow case [2018 (5) TMI 1627 - ITAT BANGALORE] held that the deduction u/s.36(1)(viia) of the Act cannot be allowed unless the provision is created by debited to provision for bad and doubtful debts account - we hold that the AO was justified in disallowing the claim for deduction on account of provisions for bad and doubtful debts u/s.36(1)(viia) of the Act as admittedly the Assessee did not debit its profit and loss account any sum towards provision for bad and doubtful debts. TDS u/s 194A - Addition u/s.40(a)(ia) - non-deduction of tax at source in respect of interest paid during the financial year - non filing of Form 15G and 15H with the prescribed authority - HELD THAT:- Respectfully following the decision of the Tribunal in Assessee’s own case [2018 (5) TMI 1627 - ITAT BANGALORE] we hold that the CIT(A) was justified in AO was justified in deleting the disallowance of interest expenses u/s.40(a)(ia) of the Act, to the extent of the disallowance relates to interest paid to persons furnished Form 15 G and Form 15 H to the assessee as no disallowance can be made u/s 40a(ia) of the Act as held by the Hon’ble Karnataka High Court in the case of Sri Marikamba Transport Co. [2015 (6) TMI 181 - KARNATAKA HIGH COURT] . The requirement of filing of Form 15G and 15H with the prescribed authority viz., CIT is only procedural and that cannot result in a disallowance u/s 40a(ia) of the Act. Consequently, we uphold the order of CIT(A) and dismiss Gr.No.3 raised by the Revenue.
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