2004 (7) TMI 321

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....y AO. 4. The facts, in brief, are that interest payments of depositor's account were credited on 30th March, 1996, without deduction of tax and the depositor had not filed declaration under s. 197A(1A) of the IT Act, 1961 by the time. However, declaration in Form No. 15H had been filed on 16th Aug., 1996 and the deduction was claimed to have not been made by the responsible person for the reason that he had been informed by the interest recipients that they were going to file Form No. 15H. The case of the Department is that it is the requirement of the law that Form No. 15H should be in duplicate and in prescribed format and same should have been in a prescribed manner, filed within 7 days from the end of the month in which Form No. 15H ....

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....wing part of the circular: "With a view to enabling persons with income below the taxable limit to receive these categories of income without deduction of income-tax at source, the Finance Act has inserted a new s. 197A in the IT Act to provide that a person who is resident in India may receive such income without deduction of income-tax on his furnishing a declaration in writing (in duplicate) in the prescribed form and verified in the prescribed manner to the person responsible for making the payment. The declaration will have to be to the effect that the estimated total income of the declarant of the previous year including such interest on securities, dividend or other interest will be less than the minimum liable to income-tax. On t....

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....the assessee is only a technical mistake-Levy of tax and interest cancelled-IT Act, 1961, ss. 197A, 201(1A)." 9. In view of the above, it has been submitted that in view of declaration of s. 197A, no TDS was required to be made from the interest credited to the parties, the receipt of declaration and its forwarding to the office of ITO, TDS is not in dispute and even if the assessee has received a declaration a few days late, it is only a technical mistake for which no tax should be levied upon the assessee. The Tribunal in the above case cancelled the tax under s. 201 along with interest under s. 201(1A) of the Act. 10. In view of the circulars referred to and relied by the learned Authorised Representative and as well as clear-cut f....