2018 (6) TMI 682

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....ch of non submission of from 15G/15H by the assessee to the authorities which resulted no loss to the revenue as the tax has been paid by the payee or no tax is payable by the payee as their income was below taxable limit. 2. That the appellant craves right to add, amend, alter, withdraw any one or more grounds of appeal." 2. The AO noted that the assessee has not deducted TDS in respect of interest paid on unsecured loans. The assesse has submitted that Form 15G/15H with reference to these parties however, the AO did not accept these forms on the ground that as per the provisions of Section 197A(IA) and Rule 29C of the Income Tax Rules the assessee was required to deliver these forms to the Chief Commissioner/ Commissioner within the ....

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.... decision of the Mumbai Benches of the Tribunal in case of Karwat Steel Traders vs. ITO 145 ITD 370 as well as decision of the Hyderabad Benches of the Tribunal in case of ACIT vs. Chittor Distt. Co-operative Central Bank Ltd. 161 ITD 282. Thus, the ld. AR has submitted that the disallowance made by the AO is not justified. 4. On the other hand, the ld. DR has relied upon the orders of the authorities below and submitted that the scheme and purpose of obtaining the Form 15G/15H and to be submitted to the office of Chief Commissioner/Commissioner is to bring the matter in the notice of the taxing authority and to prevent the avoid of tax by the recipient of the amount without subjected to TDS. He has relied upon the order of the authorities....

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....eclaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year inclusive of the income so received will be nil. Therefore, as per the provisions of Section 197A(1A) the only requirement is taking the declaration in writing from recipient and verification in the prescribed form and once the requirements of this section is complied with the assessee is under no obligation to deduct tax at source on such payments. Sub-section (2) of Section 197A is a separate provision requiring the payer to deliver the declaration so obtain to the Principles Chief Commissioner or Chief Commissioner or Principles Commissioner or Commissioner as case m....