AO disallowed interest paid to two persons for failure by the assessee to deduct tax at source on the payments. The assessee filed form 15G and form 15H before the CIT (A) but the latter did not consider them. On appeal the Tribunal held that the assessee had filed form 15G or form 15H. The CIT (A) should have considered the evidence supplied by the assessee and if he was not satisfied, got it verified from the bank. The AO is directed to delete the addition. (AY.2008-09)
Hiralal Jain v. ITO (2020) 77 ITR 333 (Indore)(Trib.)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Failure to deduct tax at source-Filing Forms 15G and form no 15H before CIT (A) -Addition is unsustainable-CIT (A) ought to have verified from the banks- AO is directed to delete the addition. [S. 251]