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TMI Blog2022 (1) TMI 1087X X X X Extracts X X X X X X X X Extracts X X X X ..... t Year 2009-10. 2. When the matter was called for hearing it was noticed that there was none appeared on behalf of the assessee despite the fact that case has been listed for hearing for more than 3 times. On the previous occasion the notice intimating the date of hearing was sent to the address of the assessee which was duly served. It is the trite law that assessee after filing the appeal should be vigilant enough to prosecute the same. But, we find that the assessee is not serious in pursuing the appeal filed by it. In the absence of any co-operation from the side of the assessee, we don't find any reason to keep the matter pending before us. Accordingly, we decide to proceed to adjudicate the appeal after hearing the learner DR appeari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. 5. The assessee in the present case is a bank and accepting deposits from the public and paying interest to them on such deposits. The assessee in the year under consideration has paid interest to one of the party namely Shri Bipin N Shah amounting to Rs. 1,71,031/- without deducting the TDS under the provisions of section 194A of the Act. It was contended by the assessee that it has received form 15H/15G from the party and therefore no TDS was deducted in pursuance to the provisions specified under section 197A(1A) of the Act. 5.1 However, the AO was of the view that the provisions of section 197A(1A) of the Act deals with the payment of interest up-to the amount not chargeable to tax i.e. Rs. 1,50,000/- for the year under consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the payee has furnished his return of income declaring an income of Rs. 1,43,320/- after claiming the deduction under section 80C/80D of the Act for Rs. 56,230/-. The return of income was filed by the payee after considering the amount of interest received from the assessee. Thus, income declared by the payee was less than the basic exemption limit provided under the Act i.e. Rs. 1,50,000/- only. Accordingly it was prayed in the statement of facts that the assessee should not be treated as assessee in default in the manner provided under section 201(1) of the Act. 10. On the contrary, the learned DR vehemently supported the order of the authorities below. 11. We have heard the rival contentions of both the parties and perused the mate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w verified the genuineness of the claim of the assessee. We are of the view that the proviso to section 201(1) in beneficial in nature hence the same should be applied in liberal manner. In the case on hand the payee to whom interest income was credited by the assessee bank is an individual and arguably declaring very nominal income which is below the taxable limit. Thus in our understanding the fact that weather the payee has included the interest income in return of income can be easily verified. 11.3 Therefore in view of the above discussion and in interest of justice and fair play, we set aside the issue to the file of the AO with the liberty to verify the fact that weather the payee has included the interest income in his return filed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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