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2021 (12) TMI 1029 - AT - Income TaxDemand u/s 201 (I) - AO treated the assessee as an assessee in default for non-deduction of tax u/s 201 - Form Nos.15G/15H not filled in properly - Assessee submitted that once the appellant bank has obtained the declarations forms from the depositors. it has no option but not to deduct the tax at source. The appellant bank has no legal obligation to deduct tax at source on the payments made to depositors - HELD THAT:- As decided in own case [2016 (5) TMI 1566 - ITAT HYDERABAD] once the assessee obtained Form 15I from the sub-contractors whose contents are not disputed or whose genuineness is not doubted, then, the assessee is not liable to deduct tax from the payment made to sub-contractor. Once, assessee is not liable to deduct tax disallowance u/s 40(a)(ia) cannot be made. The assessee’s breach of the requirement to furnish details to the income tax authority in the prescribed form within the prescribed time may attract other consequences but cannot result in a section 40(a)(ia) disallowances. Hence, addition made on this count is deleted. - Decided in favour of assessee. The facts and findings recorded therein, has substance over the order passed by the ITO(TDS) u/s 201(1) & 201(1A) of the Act. Considering the observations of the Tribunal in the assessee’s own case as quoted supra, we allow the grounds raised by the assessee on this issue.
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