| COURT: | ITAT Hyderabad |
| CORAM: | Inturi Rama Rao (AM), P. Madhavi Devi (JM) |
| SECTION(S): | 194A, 197A, 40(a)(ia) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | TDS deduction, TDS disallowance |
| COUNSEL: | S. Rama Rao |
| DATE: | August 7, 2015 (Date of pronouncement) |
| DATE: | August 10, 2015 (Date of publication) |
| AY: | 2009-10 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 40(a)(ia)/ 194A/ 197A(1A): If payer obtains declarations in Form 15G/ 15H, tax is not deductible at source. Failure to furnish such declarations to CIT may attract penalty u/s 272A(2)(f). However, disallowance u/s 40(a)(ia) cannot be made | |
The assessee has received such Forms as prescribed from those persons to whom interest was paid/being paid and accordingly no deduction of tax was to be made in such cases. The default for non-furnishing of the declarations to the Commissioner of Income-tax as prescribed may result in invoking penalty provisions under section 272A(2)(f), for which separate provision/procedure was prescribed under the Act. However, once Form 15G/ Form 15H was received by the person responsible for deducting tax, there is no liability to deduct tax. Once there is no liability to deduct tax, it cannot be considered that tax is deductible at source under Chapter XVII-B as prescribed under section 40(a)(ia)
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