Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (11) TMI 717 - AT - Income TaxTDS u/s 194 - Failure to prove regarding forwarding of Form No. 15G/H or not - Order u/s 201(1) and 201(1A) – assessee in default - Held that:- The assessee has furnished declarations in the prescribed format in respect of interest payment/credit made to depositors wherein tax was not deducted at source - instead of pointing out certain defects, deficiencies/technical objections, the AO should have accepted the declaration - Once a declaration is received from the depositor in the prescribed manner, the deductor is under a statutory obligation not to deduct tax - the assessee cannot be penalized or saddled with liability u/s 201(1) or 201(1A) of the Act when the depositors to whom interest has been paid/credited have furnished declarations in the prescribed manner requesting not to deduct tax - merely because there are some technical defects in the declaration or they have been received after the date of credit of interest to the account of the payee they cannot be rejected – thus, the order of the CIT(A) is upheld – Decided against revenue. Deletion of penalty u/s 271C – Demand already set aside, so penalty cannot be levied - Held that:- Before the AO u/s 201(1) & 201(1A) of the Act, the assessee had produced declaration in form 15G in respect of the payments/credits where tax has not been deducted at source – the AO has not accepted the declaration by observing that at the time of survey, only some of the declarations were found and others were obtained by the assessee only after the date of payment/credit of the interest - Even out of the declarations found at the time of survey, the AO refused to accept many by pointing out certain defects and deficiencies - the demands have been deleted, the penalty also cannot survive - once the depositors have furnished the declaration in prescribed manner requesting the deductor not to deduct tax at source, the deductor is under a statutory obligation not to deduct tax – thus, the order of the CIT(A) is upheld – Decided against revenue.
|