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2021 (5) TMI 627 - AT - Income TaxDisallowance of interest paid on unsecured loans - assessee pleaded that the aforesaid interest was paid to five parties without deduction of tax at source and those parties had also furnished Form Nos.15H & 15G before the assessee - HELD THAT:- As submission of the assessee was rejected by the ld. CIT(A) by stating that the said second proviso to Section 40(a)(ia) was introduced only w.e.f. 01/07//2012 and cannot be made applicable for A.Y.2011-12. We find that the additional evidences filed by the assessee containing Form15G & 15H ought to have been admitted by the ld. CIT(A) as assessee was genuinely prevented from filing the same before the ld. AO as no questions were received by the ld. AO regarding the same. Once Form No. 15G & 15H are duly submitted by the assessee before the department, then assessee cannot be fastened with the disallowance u/s.40(a)(ia) of the Act for non-deduction of tax at source. However, these forms i.e. Form 15G & 15H have not been subjected to verification by the ld. AO. Hence, in the interest of justice and fair play, we deem it fit and appropriate to remand this issue to the file of the ld. AO for examining the Form 15G & 15H submitted by the assessee and decide the issue of disallowance of interest on unsecured loans afresh in accordance with law. The ld. AO is also directed to give a specific finding with regard to applicability of second proviso of Section 40(a)(ia) r.w.s. 201(1) of the Act while deciding the issue. Accordingly, the grounds raised by the assessee are allowed for statistical purposes.
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