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2023 (4) TMI 1112 - AT - Income TaxDisallowance of interest expenditure u/s. 40(a)(ia) for non furnishing Form 15G / Form 15H - HELD THAT:- As no TDS has been deducted by the payer on the interest and no supportive documents were filed before the Ld.AO. As in case of CIT vs. Sri Marikamba Transport Co. [2015 (6) TMI 181 - KARNATAKA HIGH COURT] has held that no disallowance of interest paid to persons who furnish form 15G/H can be made in the hands of the assessee u/s. 40(a)(ia) of the Act. As in case of JCIT vs. Karnataka Vikas Grameena Bank [2018 (5) TMI 1627 - ITAT BANGALORE] has held that filing of form 15G/H with prescribed authority is only procedural and cannot result in a disallowance. This Tribunal also held that to the extent that payment of interest relates to the government and exempted category of persons, no disallowance is warranted. As in the present facts, the assessee is directed to furnish Form 15G/H to the Ld.AO. AO is directed to consider the same and to consider the claim of assessee by carrying out necessary verification after affording proper opportunity of being heard. Ground raised by assessee stands allowed for statistical purposes.
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