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of <h1>Assessee's Appeal Allowed for Re-verification</h1> <h3>M/s. Tamilnadu Mercantile Bank Ltd. Versus The Income Tax Officer, TDS Ward, Virudhunagar</h3> M/s. Tamilnadu Mercantile Bank Ltd. Versus The Income Tax Officer, TDS Ward, Virudhunagar - TMI Issues:The judgment involves the assessment year 2013-14 and pertains to the appeal filed against the order of the Commissioner of Income Tax (Appeals)-2, Madurai.Grounds of Appeal:- The Commissioner of Income-tax (Appeals)-1, Madurai erred in partly allowing the Appeal for the Assessment Year 2013-14.- The reasons given by the Commissioner of Income-tax (Appeals)-1, Madurai are not tenable.- Dispute regarding Depositors who had given Form 15G, Form 15H, and filed Return of Income.- Interpretation of Section 197A(1A) regarding no deduction of tax under certain conditions.- Reliance on the Supreme Court decision in HINDUSTAN COCA COLA BEVERAGE (P.) LTD. vs. COMMISSIONER OF INCOMETAX.- Circular No. 275/201/95- IT(B) issued by the Central Board of Direct Taxes.- Interpretation of Section 201 regarding the consequence of failure to deduct or pay taxes.- Filing of Form 15G not considered.- Issue of TDS deduction on interest paid to Senior Citizens and the submission of Form 15H.- Reference to ITAT Mumbai Bench decisions in similar cases.- Request for reconsideration of the order of the Commissioner of Income-tax (Appeals)-1, Madurai.TDS Inspection and Disputed Deductions:During a TDS inspection, it was found that TDS was not deducted on interest payments exceeding Rs. 2 lakhs for 22 payees. The Assessing Officer (AO) calculated a total TDS deductible amount and disputed the reversal of TDS on submission of Form Nos.15G/15H. The First Appellate Authority and the Tribunal had different views on the matter, leading to further appeals.Arguments and Decision:The appellant argued that TDS was deducted as required, and reversals were made upon submission of relevant forms. The AO's decision was challenged for not accepting the explanations provided. The Tribunal found that the submissions made by the assessee were valid and directed a re-examination by the AO. It was emphasized that when necessary declarations in Form Nos.15G/15H are submitted, TDS deductions are not required, and the AO should reconsider the claim based on the relevant forms submitted.Conclusion:The appeal filed by the assessee was allowed for statistical purposes, and the issue was remanded back to the AO for re-verification and decision in accordance with the law. The order was pronounced on March 31, 2023, in Chennai.
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