TMI Blog2019 (6) TMI 1124X X X X Extracts X X X X X X X X Extracts X X X X ..... ccordingly, we uphold the order of the Ld.CIT(A) relating to the deductees of Form 15G/15H cases and confirm the demand raised by the AO. Accordingly, the appeal of the assessee relating to deductees in whose case the Forms 15G/15H were not produced by the deductor is dismissed. Regard to Form15G/H with wrong PAN or without PAN - For the Financial year 2013-14 the deductor has furnished Form-15G in the case of TKD Prasad without having PAN. Though Form- 15G without PAN is invalid, in this case the amount involved was only ₹ 2098/- and the assessee has furnished the photo copy of the PAN card in page No.63 of the paper book. Therefore, we direct the AO to delete the demand raised u/s 201/201(1A) in the case of TKD Prasad. For the Financial year 2014-15 the deductor has furnished Form-15G in the case of M.Sambasiva Rao and the AO raised the demand for furnishing Form 15G/15H without PAN or wrong PAN. The assessee has furnished the copy of PAN card and the interest payment exceeds the taxable limit. Therefore, the deductee required to obtain no deduction certificate u/s 197 r.w.rule 29 and not Form 15G. Therefore, we hold that the AO has rightly treated the assessee as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the facts of both the appeals are common, they are clubbed, heard together and disposed off in a common order for the sake of convenience as under. 2. The facts of the case in brief are as under. The deductor (assessee) is a commercial bank and a survey u/s 133A was conducted in the office premises of the deductor, M/s Lakshmi Vilas Bank Ltd., on 13.08.2015 and during the course of survey, the Assessing Officer (AO) [ITO (TDS)] found that the deductor has not deducted the TDS in some of the payments made in which the TDS is applicable and in some cases, the deductor has made short deduction. When the deductor was asked to explain the reasons for non-deduction/short deduction of tax at source, the deductor submitted Form No.15G/15H of some of the customers and has not offered any explanation in the remaining cases. The AO further observed that the deductor has not deducted the TDS on the basis of Form No.15G/15H. Even though the interest payment was more than the basic limit, the deductor paid the interest without deduction of tax at source obtaining Form 15G/15H. Therefore, the AO proposed to treat the deductor as assessee in default, since, it has failed to ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 37 25685 95105 5. MERCHANTS MINI MUTUALLY COOP THRIFT AAALM0048A 22963 37 8496 31459 6. SECRETARY AND CORRESPONDENT TJPS COLLEGE GUNTUR AAATT8931D 17189 37 6360 23459 7 KOLLA SIVA NAGENDRAMMA AGTPK2534N 36947 37 13670 50617 8 POLISETTY SOMASUNDARAM CHARITIES AAATP6658D 27185 37 10058 37243 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. U/S 201(1A) Total CASES WHERE INTEREST PAYMENT EXCEEDS BASIC LIMIT 1. VASAVI VIDYA NIDHI COMMITTEE AAATV1584A 5698061 569806 25 142452 712258 2. HINDU COLLEGE DEVELOPMENT AND EDUCATIONAL ACADEMY AAABH0044H 1987960 198796 25 49699 248495 3. SREE KASI VYSYA SATRA SANGAM AAETS3092E 1475095 147510 25 36877 184387 4. MERCHANTS MINI MUTUALLY COOP THRIFT AND CREDIT SOCIETY LTD. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 282939 28294 25 7073 35367 13 GUNDA SIVA SURYA KUMARI 269871 26987 25 6747 33734 TOTAL 13558341 1355834 25 338959 1694793 NO PAN CASES 14 MORISETTY SAMBASIVA RAO WRONG PAN 265598 53120 25 13280 66399 15 VASUNDHARA DEVI SV NO PAN 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment is more than basic limit of ₹ 10,000/-. During the course of survey action by the Assessing Officer TDS, the appellant has produced form No. 15G /15H in case of some customers and has failed to produce in case of 16 customers. Since the assessee deductor has failed to deduct TDS as per the provisions u/s. 194A, the Assessing Officer has treated the appellant as an assessee in default u/s. 201(1A) of the I.T. Act for the year under consideration. Now, the appellant has come with the explanation that out of these 16 customers, 7 customers being trust, the appellant did not comply with the provisions of u/s. 194A of the I.T. Act as the income of the these trust customers are exempt from tax. This plea of the appellant is not tenable why because, the Bank authorities do not know whether the trust customers can spend 85% of their receipts for the objects of the trust or not. It is premature to come to conclusion beforehand that these trust clients would qualify all the conditions laid down u/s.13 to claim exemption u/s.11 even before they draw their income and expenditure account for F.Y. 2013-14. These trust clients are not connected to appellant bank in any way except ke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee for liability u/s 201. However with regard to the liability u/s 201(1A), the Ld.AR relied on the grounds. 6. On the other hand the Ld.DR supported the orders of lower authorities. 7. We have heard the rival contentions and perused the material placed on record. During the appeal hearing, the Ld.AR raised the following issues relating to different situations of various deductions. (i) First such situation is where the beneficiaries(deductees)have filed the return of income: The Ld.AR argued that in such situation raising the demand u/s 201 is not permissible in view of the Hon ble Apex Court s decision in the case of Hindustan Coca Cola Beverages Pvt. Ltd. Vs. CIT dated 16.08.2007 reported in 293 ITR 226. We agree with the Ld.AR and we remit the matter back to the file of the AO to verify the correctness of the returns filed by all the deductees and restrict the demand to the extent of 201(1A). The assessee is directed to submit the necessary documents before the AO. Accordingly, the appeal of the assessee relating to the deductees who filed the returns of income declaring the income relating to the interest received stands partl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15G/15H were not produced by the deductor is dismissed. 10. The next issue is with regard to Form15G/H with wrong PAN or without PAN. For the Financial year 2013-14 the deductor has furnished Form-15G in the case of TKD Prasad without having PAN. Though Form- 15G without PAN is invalid, in this case the amount involved was only ₹ 2098/- and the assessee has furnished the photo copy of the PAN card in page No.63 of the paper book. Therefore, we direct the AO to delete the demand raised u/s 201/201(1A) in the case of TKD Prasad. 11. For the Financial year 2014-15 the deductor has furnished Form-15G in the case of M.Sambasiva Rao and the AO raised the demand for furnishing Form 15G/15H without PAN or wrong PAN. The assessee has furnished the copy of PAN card in page No.80 of the paper book and the interest payment exceeds the taxable limit. Therefore, the deductee required to obtain no deduction certificate u/s 197 r.w.rule 29 and not Form 15G. Therefore, we hold that the AO has rightly treated the assessee as assessee in default and raised the demand. Accordingly we uphold the order of the Ld.CIT(A) and dismiss the appeal of the assessee on thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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