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2022 (1) TMI 1087 - AT - Income TaxTDS u/s 194A - assessee in default under the provisions of section 201(1)/201 (1A) of the Act on account of non-deduction of TDS - HELD THAT:- The proviso to section 201(1) provides that the assessee shall not be deemed assessee in default provided if the payee has furnished the return of income u/s 139 of the Act after considering the income which was subject to the provisions of TDS and paid the tax on such income. To this effect, the assessee was to furnish the certificate from the qualified chartered accountant in the prescribed form. Admittedly, the contentions raised before us were also raised by the assessee before the learned CIT (A) but no benefit was extended by the learned CIT (A) to the assessee on the ground that the submission of the assessee was without the supporting evidence. Even before us, we do not find any documents supporting the contention of the assessee except the submission as discussed in the preceding paragraph. Onus upon the assessee to furnish the CA certificates that the payee has paid necessary taxes on income credited by the assessee. However in the case on hand the assessee has submitted PAN of the payee and claimed that the payee has filed income tax return for the year dated 13-07-2009 and declared gross total income of ₹ 1,71,031/- before claiming deduction under section 80C and 80D for ₹ 56,230/- which includes interest income credited by assessee bank. The claim of the assessee bank was very much verifiable by the revenue authority from the income tax record of the payee. None of the authorities below verified the genuineness of the claim of the assessee. We are of the view that the proviso to section 201(1) in beneficial in nature hence the same should be applied in liberal manner. In the case on hand the payee to whom interest income was credited by the assessee bank is an individual and arguably declaring very nominal income which is below the taxable limit. Thus in our understanding the fact that weather the payee has included the interest income in return of income can be easily verified. Therefore we set aside the issue to the file of the AO with the liberty to verify the fact that weather the payee has included the interest income in his return filed for the year or not and determine the issue accordingly. Hence, the ground of appeal of the assessee is allowed for the statistical purposes.
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