TMI Blog2015 (6) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. Disallowance of interest on loan - Held that:- From the above decision of the Co-ordinate Bench of Mumbai Tribunal in the case of Vipin Mehta (2011 (5) TMI 503 - ITAT MUMBAI) and the fact in this case is that the assessee has received Form 15G from the respective payees to whom interest is paid, the AO has no authority to make any disallowance for non deduction of TDS u/s 40(a)(ia) of the Act. - Decided in favour of assessee. - ITA No. 979/Kol/2011 - - - Dated:- 25-5-2015 - P. K. Bansal, AM And Mahavir Singh, JM,JJ. For the Appellant : Shri M D Shah For the Respondent : Shri Pinaki Mukherjee, JCIT, Sr. DR ORDER Per Mahavir Singh, JM. This appeal of the Revenue is directed against order of the CIT(A)-Central-I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO by invoking the provision of section 40(a)(ia) of the Act for non deduction of TDS u/s 194J of the Act made disallowances. Aggrieved assessee preferred appeal before CIT(A), who also confirmed the action of AO. 5. We find that in each of the case audit fee did not exceed Rs.,20,000/-. The relevant assessment year involved is 2006-07 relevant to financial year 2005-06. In view of the proviso of section 194Jof the Act fee for professional or technical services the assessee is not liable to deduct TDS in case the payment does not exceed the monetary limit prescribed i.e. ₹ 20,000/- in that year in each of the case. In view of the proviso the present assessee is not liable to deduct tax as the payment in all the three case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counter reply filed by the Ld.A.r. The 15G Forms submitted were incomplete and none of the Schedule-I II, III provide relevant information. Even PAN of the respective persons is not given in any of the Form 15G. Further as reported by the AO the Ld. Ar expressed his inability to produce the required information or to produce any of the persons for examination. Hence no credit can be given to the unverifiable form 15G submitted by the assessee in respect of interest payment of Rs. However as reported by the AO that TDS has been duly deducted on payment of interest of ₹ 3,75,000/-, the disallowance of ₹ 47,40,432/- made by the AO is restricted to ₹ 43,65,432/-. The appellant will get necessary relief accordingly. 8. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eclaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which the interest is to be included will be nil. Sub-section (2) provides that the person responsible for paying interest shall deliver or cause to be delivered to the CCIT or CIT one copy of the declaration submitted by the payee of the interest to the assessee on or before the seventh day of the month next following the month in which the declaration was furnished to him. If the person responsible for paying the interest (i.e. the assessee) does not comply with sub-section 2 of section 197A, he is liable to pay penalty of ₹ 100/- for every day during which t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to hold that the declarations were not submitted by the payees of the interest to the assessee at the time when the payments were made. Without disproving the assessee's claim on the basis of other evidence, except by way of inference, it would not be fair or proper to discard the claim. The Assessing Officer has not recorded any statements from the payees of the interest to the effect that they did not file any declarations with the assessee at the appropriate time or to the effect that they filed the declarations only at the request of the assessee in September /October, 2008. In the absence of any such direct evidence, we are unable to reject the assessee's claim. The Assessing Officer has stated in para 4.4 of the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovides in subsection (lA) that if the payee of the interest has filed the prescribed form to the effect that he is not liable to pay any tax in computing his total income, the payer shall not deduct any tax. The sub-section does not impose any obligation on the payer to find out the truth of the declarations filed by the payee. Even if the assessee has delayed the filing of the declarations with the office of the CIT / CCIT (TDS) within the time limit specified in sub-section (2) of section 197A, that is a distinct omission or default for which a penalty is prescribed. Section 273B provides that no penalty shall be imposed under any of the clauses of sub-section (2) of section 272A for the delay, if the assessee proves that there was reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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