Held that in most of the cases, the deductees had already filed returns of income and paid Income-tax on interest payment made by the assessee-bank. This also needed to be verified by the Assessing Officer, with necessary evidence. The order of the Commissioner (Appeals) was set aside and the issue restored to the Assessing Officer with a direction to re-examine the claim of the assessee, in light of evidence that may be placed by the assessee before the Assessing Officer to prove their case. (AY. 2015-16 to 2017-18)
City Union Bank Ltd. v. Dy. CIT (2024)112 ITR 337 /229 TTJ 139 (Chennai)(Trib)
S. 40(a)(ia): Amounts not deductible-Deduction at source-Interest-Payment of deposits-Disallowance of 30 per cent of interest-Deductees have already filed return and paid tax-Matter remanded. [S.194A, 197, Form 15 G, 15H]