TMI Blog2016 (7) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... ations which are exempt from payment of tax. That considering all the facts in this case in its entirety and the judicial pronouncements as discussed above, we do not find any reason to interfere with the order of the learned CIT (A). The relief granted to the assessee is therefore, sustained. The appeal by the Revenue is dismissed. - Decided in favour of assessee - ITA No. 27/Hyd/2016 ,C.O. No.16/Hyd/2016 - - - Dated:- 1-7-2016 - Shri B. Ramakotaiah, Accountant Member And Shri Partha Sarathi Chaudhuri, Judicial Member For the Revenue: Shri K.E. Sunil Babu, DR For the Assessee : Shri A.V. Raghuram ORDER Per Shri Partha Sarathi Chaudhuri, J. M. The appeal and cross objection are filed by the Revenue and the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he attention of the subordinate authorities to the proviso to section 40(a)(ia) which is as under: [Provided further that where an assessee fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B on any such sum but is not deemed to be an assessee in default under the first proviso to sub-section (1) of section 201, then, for the purpose of this sub-clause, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee referred to in the said proviso. ] In accordance with the proviso where it is not possible to pass an order u/s 201 holding the assessee in default, no disallowance u/s 40(a)(ia) could be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r organization whose income are exempt from TDS deduction as per the provisions of section 196. Assessee submitted a statement giving the details of interest paid along with a column giving status of the recipients. It was further submitted by the assessee that wherever the recipient was liable for tax, the assessee has deducted the tax and only where the income was not taxable, deduction of tax was not made. That the assessee more specifically placed reliance in the decision of the jurisdictional High Court in the case of Janapriya Engineers Syndicate in ITTA No.352 of 2014 dated 24.6.2014 has held that the Tribunal is bound to follow the decision in the case of Merlyn Shipping Transport (Supra) until and unless the said decision is upse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade. That the jurisdictional High Court in the case of Janapriya Engineers Syndicate (Supra) has held that the Tribunal is bound to follow the decision of the Merlyn Shipping (Supra) until and unless the decision is upset by them. That in fact the aforesaid decision of the Meryln Shipping of the Special Bench shall be valid and binding on the smaller and Coordinate Benches of this Tribunal. That the assessee has already submitted before the CIT (A) list of all the people to whom interests were paid and it is also not disputed that interests were paid in most of the cases to organizations which are exempt from payment of tax. That considering all the facts in this case in its entirety and the judicial pronouncements as discussed above, we do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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