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TMI Blog2016 (11) TMI 1686X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Commissioner (Appeals) erred in his conclusion, in para-12 of his order in upholding the view of the Assessing Officer that technical defects in form no.15G will entail disallowance of interest paid in terms of section 197 A( 1). 3. The learned Commissioner (Appeals) erred in not considering the position that the defects in the form no.15G115H were curable. 4. The learned Commissioner (Appeals) erred in not upholding the legal position that provisions of section 40(a)(ia) can only be invoked in a case where tax is deductable at source. 5. The learned Commissioner (Appeals) ought to have taken into account the position that once form no.15G/15H is filed before him by the payees of the interest, the appellant has no choice except to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s: "5. The assessee has accepted deposits/loans from outside parties and is paying interest on the same. In the money lending business, the interest paid on such loans/deposits is Rs. 15,11,189. In the Mulamoottil Trading co., the interest on unsecured loan paid is Rs. 4,37,608. The assessee is not deducting tax on these interest payments, although there are payments exceeding Rs. 5000 during the year. The explanation of the assessee is that Form 15G or Form 15H has been filed by the payees and therefore the assessee is not under any obligation to deduct tax. 5.1 15G forms were called for and examined. It is seen that the forms were not properly verified. The year to which the declaration applies is not filled in. Further the date and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... presentative merely argued that it is only a technical defect, which could have been cured if the assessing officer had given an opportunity to the appellant. This is not a valid argument. There are major lapses on the part assessee. He has not carried out important procedures in accepting the Form No.15C. The addition made by the Assessing Officer is hereby upheld. 5 The assessee being aggrieved is in appeal before the Tribunal. The ld counsel for the assessee reiterated the submissions made before the Income Tax Authorities. On the other hand, the ld DR relied on the findings of the Assessing Officer and the CIT(A). 6 I have heard the rival submissions and perused the material on record. It is to be mentioned that the genuineness of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee failed to comply with the requirements of a rule namely, Rule 56A of the Central Excise Rules. The Hon'ble Supreme Court held that "the appellant be permitted to avail the benefit of the notification by complying at this stage with Rule 56A to the satisfaction of the department and accordingly ordered remission of the matter to the Collector of Central Excise with a direction to permit the appellant to comply at this stage with the requirement of Rule 56A of the Central Excise Rules ad claim set off of the duty payable." 6.2 As mentioned earlier, non filling up of the column in Form 15G/15H by the payee's are only technical default, which could have been corrected had the assessee been given an opportunity. In the interest of justice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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