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2017 (4) TMI 240 - AT - Income TaxDisallowance made under section 40(a)(ia) - interest paid without deducting TDS - Held that:- there was no dispute that the assessee has obtained Form 15G from the persons to whom interest was paid/credited. Further, the ld. CIT(A) has observed that the Assessing Officer did not doubted the fact that the assessee obtained Form 15G before crediting/paying interest to the depositors. Since the Assessing Officer made the disallowance only on the ground that Form 15G/15H were not submitted to the ld. Commissioner in time, the ld. CIT(A) was of the opinion that only penalty proceedings can be initiated under section 272A(2)(f) of the Act and no disallowance can be made under section 40(a)(ia) of the Act as has been held by the Hyderabad Benches of the Tribunal in the case of Malineni Babulu (HUF) v. ITO [ 2015 (8) TMI 705 - ITAT HYDERABAD] Since the assessee has made the entire payment during the year itself and nothing is outstanding or yet to pay. CIT(A) has rightly deleted the disallowance made under section 40(a)(ia). See CIT v. Vector Shipping Services (P) Ltd. [2013 (7) TMI 622 - ALLAHABAD HIGH COURT] - Decided in favour of assessee
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