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2021 (2) TMI 442 - AT - Income TaxTDS u/s 194A - Demand u/s. 201(1) and u/s. 201(1A) - non deduction of TDS against the interest credited/paid to the customer by the bank - bank as an assessee in default for not deducting TDS and took up the case of two customers (i) Shri Debabrata Hati and (ii) Smt. Kamala Nag - AO acknowledges that both the customers have filed Form 15G as provided u/s. 197A(1)/1A and read with Rule 29C and was of the opinion that since the interest amount exceeded the threshold limit of taxable income, the AO declared assessee bank as an assessee in default - THAT: - As both the customers against whom the AO has found that the assessee bank failed to deduct tax have duly reflected and shown the entire interest income in their respective return of income for AYs 2014-15 and 2015-16 and has remitted the tax on it, then in such a scenario the assessee bank cannot be held to be an assessee in default. However, according to the AO, the assessee did not fulfill the conditions specified as per the first proviso to section 201 of the Act. In the light of the discussion, we set aside the order of the Ld. CIT(A) and remand the issue back to the file of the AO and direct the appellant bank to furnish the documents as required under first proviso to section 201 of the Act and if the assessee files the same before the AO; and if the AO is satisfied that both the customers have shown their interest income received from the assessee bank in their respective Return of Income and they have remitted the tax on it, then the assessee bank should not be treated as an assessee in default. - Appeals of the assessee are allowed for statistical purposes.
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