TMI Blog2016 (11) TMI 1686X X X X Extracts X X X X X X X X Extracts X X X X ..... error in furnishing the declaration in Form 15G/15H wherein certain columns of the Forms were not filled-up by the payee. The mistakes found in the declaration are of technical nature and the assessee could have got it corrected, had he been given an opportunity, instead of taking to the extreme step of adding back the entire interest payment. AO and the CIT(A) instead of giving an opportunity to the assessee to correct the Form 15G/15H had straight away invoked the provisions of section 40(a)(ia) of the Act and disallowed the interest expenditure. Non furnishing of statement to CIT as mentioned in Rule 29C(5) only entails the assessee for penalty u/s 272A(2) of the Act and not for a automatic disallowance of interest expenditure by inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 desist from deducting tax from the interest. The sub section (IA) of section 197 A uses the word shall which leaves no choice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e money lending business, the interest paid on such loans/deposits is ₹ 15,11,189. In the Mulamoottil Trading co., the interest on unsecured loan paid is ₹ 4,37,608. The assessee is not deducting tax on these interest payments, although there are payments exceeding ₹ 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 place of the declaration is also not filled in. (In fact none of the details are filled in except ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ured 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 deposit received and the payment of interest on the same for the relevant assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 and equity, I am of the view that the assessee should be given an opportun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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