2016 (5) TMI 1566

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ous dates. In response to the said notices, the AR of the assessee appeared and produced books of account and also furnished the information called for verification. 3. The Assessing Officer noted that the information filed viz., the vouchers for purchases and expenditure, Statutory Registers, List of cash expenditure of Rs. 20,000/- and above, details of deposits and list of sundry creditors, details of other provisions, details of other incomes, details of rents, details of expenditure claimed under Repairs to Machinery, salaries and wages, advertisement, other expenses, bad debts etc. had been verified thoroughly with reference to the books of account. 4. During the assessment proceedings, a show cause notice dated 06.03.2013 issued to the assessee requesting to furnish the details of deposit holders earning interest on their deposits exceeding Rs. 10,000/- and also informed that, in the case of non-submission of information, it is proposed to make an addition u/s.40(a)(ia) to the tune of Rs. 73,39,05,000/- as admitted in the Schedule 15 towards interest on deposits as on 31.03.2010. In response thereto, the assessee filed a letter dated 16.03.2013 stating that they have eithe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... justified and get the support of the judicial decisions referred to and relied upon by appellant To this extent, the appellant gets relief on account of verification of Forms 15G/15H by the Assessing Officer during Remand proceedings. However, it is relevant to refer to the fact of the case that the appellant was required to furnish balance of details, for which, the appellant failed to furnish the details by the given date, implying that the appellant do not have enough evidence to show that Form 15G/15H were obtained by them from its payees for the amounts of Rs. Rs. 1,66,67,602/- to explain the default of not making TDS on the said payments. Under the circumstances, it is reasonable to hold that the appellant failed to deduct tax and also failed to explain the reasons for such default, on the interest amounts of Rs. 1,66,67,602/-, thereby attracting the provisions of section 40(a)(ia) of the I.T. Act. Hence, it is held that the facts of the case are distinguishable from the facts of the cases referred by assessee with the help of case laws. Accordingly, the disallowance u/s 40(a)(ia) to the extent of Rs. 1,66,67,602/- is held to be justified." 7. Aggrieved by the order of the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....73,55,000/- on the ground that Forms 15G/15H are not submitted to the Jurisdictional Commissioner and no evidences were produced to prove whether such forms have been obtained. It is submitted that against that, the assessee had filed an appeal before the CIT(A), Tirupathi and the appeal was disposed by the CIT(A), Tirupathi vide order in ITA No. 0035/2014- 15/CIT(A)/TPT, dated 20th March, 2015 wherein the CIT(A) after considering various copies of Forms 15G/15H submitted before him as additional evidences and the same were referred to the assessing authority for necessary verification and report. In response, the Assessing Officer furnished the remand report on 13th March, 2015, a copy of which was not provided to the assessee. 8.1 It is submitted that based on such remand report, the Commissioner of Income Tax (Appeal) proceeded to confirm the disallowance to an extent of Rs. 1,66,67,602/- and granted relief to the extent of forms furnished aggregating to Rs. 5,06,87,398/-. The break-up of the interest paid by the assessee and the disallowance effected by the Assessing Officer is as follows: Particulars AY 2010-2011 Interest paid on deposits disallowed by the Assessing Off i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... and the disallowances be deleted. 8.4 The ld. AR submitted that being a regional rural bank and considering the fact that the branches are spread in the small villages and Panchayats, collecting of all the forms which would run to more than 2800 in number from various branches after a period of two years, that is, at the time of finalization of assessment would be too strenuous on the part of the assessee to comply with. Considering the fact that it is possible that old forms have been lost due to various reasons, assessee prays that there are reasonable causes why assessee could not furnish each and every form 15G and 15H obtained. 8.5 It is submitted that the assessee collects Form 15G and 15H in respect of all deposit holders having an interest of Rs. 10,000/- or more, and the failure to furnish copies of Form 15G/15H before the Assessing Authority be considered in the background of the difficulties faced by assessee. Further it is submitted that as the assessee had collected Form 15G/15H, the provisions of Section40(a)(ia) has no application as was held by this Hon'ble Tribunal in the case of Kumar Enterprises in ITA No.1750/Hyd/2013 following the decision of the Hon&#39....