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TMI Blog2018 (6) TMI 890X X X X Extracts X X X X X X X X Extracts X X X X ..... er dated 30.05.2008 for assessment year 2004-05. Shri Manoj Kataruka, Ld. Advocate appeared on behalf of assessee and Shri S. Dasgupta, Ld. Departmental Representative appeared on behalf of Revenue. 2. The assessee has taken the following grounds:- "1) that on the facts and circumstances of the case the Ld. CIT(A) has erred in confirming the order of the Assessing Officer u/s. 201(1)/201(1A) of the Income Tax Act, 1961 2) that on the facts and circumstances of the case the Ld. CIT(A) has erred in confirming the payment of interest of Rs. 9,58,748/- and Rs. 2,65,901/- to different companies, while both are payments to individuals of which on Rs. 9,58,708/- they submitted Form 15G and on Rs. 2,65,901/- TDs was properly deducted and pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... securities. During the year, AO observed that assessee has incurred interest expenses of Rs.9,58,708 and Rs.2,65,901/- which was paid to different companies without deducting TDS u/s 194I of the Act. On question for none deduction of TDS u/s 194-A of the Act. On question for non deduction of TDS on the interest expenses, assessee failed to make any reply. Therefore, AO treated the assessee in default on account of non-deduction of TDS u/s. 201(1)/201(1A) of the Act and made the disallowance of Rs.2,51,044/- being TDS amount on Interest expense of Rs. 12,24,609.00 under section 201(1) of the Act along with the amount of interest for Rs.1,25,522/- under section 201(1A) of the Act only. 6. Aggrieved, assessee preferred an appeal before Ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of AO by observing as under:- "10. In view of the above records being not traceable a discussed above, the time to which the matters relate being far too away in the past and failure on the part of the appellant to comply to the AO's requisition the appellant's plea of use of wrong address by the AO cannot be accepted. No reasonable cause seems to exist for the appellant's inability to respond to the Assessing Officer's requisition in the course of working liability u/s. 201(1)/(1A). Additional evidences filed cannot therefore be admitted. Therefore, there does not appear to be any reasonable cause for failure on the part of the appellant for the act of non-deduction of tax at source. The ground of filing form 15G cannot be allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mently relied on the order of Authorities Below. 8. We have heard the rival contentions of both the parties and perused the material available on record. In the present case, the demand was raised for the amount of TDS which assessee failed to deduct from the payment of interest u/s.194- A of the Act. Accordingly, AO was charged interest u/s 201(1)/201(1A) of the Act along with the amount of TDS. The view taken by AO was subsequently confirmed by Ld. CIT(A). Now the limited issue before us arises for adjudication so as to whether the assessee has filed Form 15G before Ld. CIT. in the given facts and circumstances. On perusal of paper book we note that assessee claimed to have filed Form 15G before Ld. CIT which is evident from the letter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stage of the proceedings. In the instant case, such enquiries were not conducted by the ITO initially and the entire case proceeded on suspicion although the assessee had placed on record adequate material which could not be rejected without placing anything in rebuttal by the revenue. IT was a very plausible explanation that the assessee did not know the whereabouts of the depositors after so many years specially when the amounts were stated to have been paid back. In allowing the benefit of doubt to the assessee the addition of Rs. 1,15,000 was to be deleted." Similarly, we also note that assessee has filed Form 15H for the immediate preceding Assessment Year i.e. 2003-04 which was duly accepted by Ld. CIT and according no disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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