Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (5) TMI 58 - ITAT CHENNAIShort deduction of TDS on interest payment - reversal of TDS deducted on submission of relevant Forms - assessee submitted that the bank has deducted TDS wherever interest payment exceeds prescribed limit, but as and when parties submitted Form Nos.15G/15H, then, TDS deduction has been reversed- as per AO once TDS has been deducted, it cannot be reversed or retained, but it can only be remitted to the account of the central government - HELD THAT:- It is a common practice in banking sector that wherever senior citizens submit declaration in Form Nos.15G/15H, TDS is not deducted on interest payments even if such payment is in excess of threshold limit. In this case, there is no dispute with regard to the fact that the assessee has deducted TDS wherever interest payments exceed threshold limit, but reversed such TDS deduction on interest payment as and when the parties submit Form Nos.15G/15H within the same financial year. When the assessee has submitted necessary declaration in Form Nos.15G/15H for non-deduction of TDS and also for reversal of TDS deduction on interest payment, then, in our considered view, the AO ought to have accepted the claim of the assessee, because, as per law, if relevant declaration in Form Nos.15G/15H is submitted before the end of the relevant financial year, then, the question of deduction of TDS on interest payments does not arise. AO is required to re-examine the claim of the assessee in light of relevant Forms submitted by the assessee. Thus, we set aside the order of the Ld.CIT(A) and restore the issue back to the file of the AO and direct the AO to re-verify the claim of the assessee and decide the issue in accordance with law.
|