2010 (7) TMI 998

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.... 2006-07 wherein the solitary ground of the assessee is that the lower authorities erred in disallowing an amount of Rs. 1,01,331 being the interest paid to creditors on 31st March, 2006 by invoking the provisions of s. 40(a)(ia) of the IT Act. 2. The facts of the case are that the AO disallowed a sum of Rs. 1,01,331 under s. 40(a)(ia) of the IT Act being the interest paid to following deposito....

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.... The photostat copies of Form 15G in respect of depositors obtained are placed at paper book pp. 7 to 17 along with the receipt of the courier placed at p. 5 of the paper book, through which it was submitted before the AO that as per provisions of s. 197A, if a declaration is submitted by the recipient to the payer then no tax is deductible. The assessee received these declarations from the deposi....

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.... of it submitting late would have followed but interest cannot be disallowed under the provisions of s. 40(a)(ia) of the Act as submitted hereinabove. further for late submitting of the certificates in Form 15G provisions of s. 201 could have been invoked by levying interest or/and paid penalty. The lower authorities have been too technical in their approach in the facts and circumstances of the c....