2023 (5) TMI 58

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.... 01. The learned Commissioner of Income-tax (Appeals)-1, Madurai has erred in partly allowing the Appeal for the Assessment Year 2013-14. 02. The reasons given by the Commissioner of Income-tax (Appeals)-1, Madurai are not tenable. 03. From the TABLE given in the Order u/s.201(1) r.w.s. 201(1A), it can be discerned that there are 3 categories of Depositors: a) Depositors who had given Form 15G; b) Depositors who had given Form 15H; and c) A Depositor, who had filed his Return of Income. 04. Both Form 15G and Form 15H had been filed by Deductees, whose estimated total income were NIL. 05. According to the provisions of Section 197A(1A), no deduction of tax shall be made, if a pe....

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..../9 5-IT(B) on 29-1-1997. JUDICIAL ANALYSIS Explained in - In HINDUSTAN COCA-COLA BEVERAGES (P.) LTD. V. JOINT CIT [2004] 90 ITD 720 (Delhi) with the following observations: "We. have also carefully examined the Circular No.275, dated 29-1-1997, which was relied on by the assessee and appearing at page No.1 of the compilation and we find that through, this circular it has been clarified by the Board that no demand visualized under section 201(1) of the Act should be enforced after the tax depositor has satisfied the official in-charge of the TDS that tax due had been paid by the deductee-assessee. The Board has further clarified that non-enforcement of demand would not alter the liability to change interest under section 20....

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....Madurai, be reconsidered. 3. A TDS inspection was conducted in the premise of M/s.Tamilnadu Mercantile Bank Ltd., Virudhunagar, on 07.06.2013. During the course of inspection, it was noticed that in respect of 22 payees, interest payment was more than Rs.2 lakhs, on which, the deductor bank has not deducted TDS. The AO worked out total TDS deductible amounting to Rs.7,00,072/-. The assessee explained that in respect of senior citizens, the bank will deduct TDS as and when payment is made. However, when parties submit Form Nos.15G/15H, the same is reversed. The AO did not accept the plea of the deductor having received Form Nos.15G/15H in those cases. The AO further was of the view that once TDS has been deducted, it cannot be reversed or....

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....5G/15H, then, TDS deduction has been reversed and this fact has been explained to the AO. However, the AO ignored details filed by the assessee and computed short deduction of TDS only on the ground that there is no provision to reverse TDS deducted on submission of relevant Forms. 5. The Ld.DR, on the other hand, submitted that the assessee could not explain with necessary details why TDS deduction has been reversed. Therefore, the matter may be set aside to the file of the AO for further verification. 6. We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. It is a common practice in banking sector that wherever senior citizens submit declaration in Form Nos.15G/1....