TMI Blog2010 (2) TMI 1191X X X X Extracts X X X X X X X X Extracts X X X X ..... se manner. On a perusal, ground Nos: 1 and 11 being general and no specific issues involved, they have become non consequential. In the remaining grounds, the cruxes of the issues raised are two-folds which are reformulated as under: (i) the Ld. CIT(A) erred in disallowing the claim of interest expenditure u/s 40(a)(ia) of the Act; (ii) the CIT(A) erred in sustaining the charge of interest u/s 234B of the Act . 3. During the course of hearing before us, the Ld. A R sought the permission of this Bench to place an application under rule 18(4) of Appellate Tribunal Rules 1963 wherein he had reasoned that (i) the ground(s) of the assessee in appeal was that the CIT erred in giving decision without stating point(s) for de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal AOs and that considering the computation of income shown in each case where F.NO:13 was made, TDS obligation was not required. 5. Brushing aside the contentions of the assessee, the AO, for the reasons set-out in the impugned order, went ahead with the disallowance of ₹ 14.55 lakhs u/s 40(a)(ia) of the Act. While doing so, he had taken the cue from the finding of the jurisdictional High Court in the case of Divisional manager, New India Assurance Co. ltd. v. ITO Another reported in 275 ITR 227. 6. Agitated, the assessee took up the issue before the Ld. CIT (A) for relief. After due consideration of the spirited arguments put-forth by the assessee and also the relevant provisions of the law [s.194A and Rule 29C etc.], ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the payees i.e.., the recipients of interest before the concerned authorities were never disposed off but the appellant failed to deduct the tax at source at the time of payment of interest without any authority. In other words the certificates u/s 197A for nondeduction of tax at sources were never furnished before the competent authority by the payees of such interests as the applications filed in the prescribed form were allegedly not dispose off. In the facts and circumstances, the ratio of the decision of Hon ble ITAT, Bangalore in the case of Khatawar Co., is squarely applicable to the present appellant. Thus, considering the decision of the Hon ble ITAT and the fact that the appellant failed to deduct the tax at source in view o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.2.1 The assessee s prime contention is that in the cases of certain payees, applications for No TDS/lower TDS were made by some of the payees in Form No.13 to their respective jurisdictional AOs with copies to the assessee. Considering the same, the assessee took a view that he was NO obligation to deduct TDS. 8.2.2. At the out-set, we would like to point out that the assessee was, perhaps, under the wrong notion that on the basis of the copies of the letters of the payees - to the jurisdictional AOs for issuance of authorization etc. - he was under no obligation to deduct TDS. Copies of such letters of the payees endorsed to the assessee were nothing but a mere information that the payees have made applications in No.13 to the AOs whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nishes a declaration to you stating that the tax on his/her estimated total income of the period Apr 2005 Mar 2006 in which the interest income is to be included in computing his/her total income will be nil and the said declaration shall be in Form No.15G .. [source: Appln. u/r 18(4) of I.T.Rules 1963]. To our dismay, no copies of F.No.15G were forth-coming to justify the assessee s stand. Mere intimation to the effect that the payee had approached for issue of an authorization (F.No.13) cannot be construed as a declaration to that effect. 8.2.8. With regard to RTI Act, we would like to point out that Form No.13 stated to have been furnished by the payees before their respective AOs for authorization not to deduct TDS etc., which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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