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Income Tax Appellate Tribunal, CUTTACK
Before: SHRI N.S SAINI
This is an appeal filed by the assessee against the order of CIT(A)-2,
Bhubaneswar, dated 30th August, 2016, for the assessment year 2012-13.
In Ground No.1 of the appeal reads as under:
“For that on the facts and in the circumstances of the case, the addition of Rs.65,772/- by Revaluation of closing stock is uncalled for and unjustified.”
2 ITA No. 438/CT K/ 2016 Asse ssment Year :20 12- 13 3. At the time of hearing, ld Authorised Representative of the assessee
did not make any submission on this ground of appeal and hence, same is
dismissed for want of prosecution.
Ground No.2 of the appeal reads as under:
“For that the disallowance of Rs.3,20,324/- u/s.40(a0(ia) under head “payment of interest to loan creditors” as made is arbitrary, unlawful and unjustified in view of the fact that the respective loan creditors duly furnish declaration in Form 15G and, therefore, no tax was deductible u/s.194A of the I.T.Act.” 5. I have heard the rival submissions and perused the orders of lower
authorities and materials available on record. In the instant case, the
Assessing Officer found that the assessee has made interest payment on
unsecured loans amounting to Rs.3,20,324/-. He observed that the
assessee has not deducted TDS from the payment of interest made. The
assessee submitted before the Assessing Officer that since the loan
creditors have filed Form 15G, therefore, he was not required to deduct
TDS from the payment of interest made to them. Since the assessee did
not produce any evidence to show that Form 15G was received by it before
payment of interest to the loan creditors and the said Forms were filed
before the Commissioner of Income Tax on or before 7th day of next month,
the Assessing Officer by invoking the provisions of section 40(a)(ia) of the
Act disallowed deduction for Rs.3,20,324/-.
On appeal, the CIT(A) confirmed the action of the Assessing Officer.
Before me, the only argument of ld Authorised Representative of the
assessee is that since Forms 15G were filed by the loan creditors, the
3 ITA No. 438/CT K/ 2016 Asse ssment Year :20 12- 13 assessee was not required to deduct TDS from the payment of interest
made to the loan creditors. He also submitted that copies of Form 15G
were filed with the Commissioner of Income Tax within the due date of
filing of the same. He submitted that the matter may be restored to the
file of the Assessing Officer for verification and adjudication of the issue
afresh.
Ld Departmental Representative had no objection to the above
submission of ld A.R. of the assessee.
I find that the assessee had plausible reason for not deducting TDS
on interest payment to the loan creditors as they have filed Forms 15G. It
is also the contention of ld A.R. of the assessee that Forms 15G were filed
before the CIT within 7th day of next month. I also find that the addition of
interest expenditure has been made by the Assessing Officer on the ground
that evidence for receiving Forms 15G and filing of the same before the CIT
was not produced by the assessee. Ld Authorised Representative has made
a submission at Bar that the relevant Forms 15G and evidence of filing the
same with the CIT are available with the assessee and has prayed for one
more opportunity for producing the same before the Assessing Officer. In
my considered opinion, no harm will be caused to the revenue if one more
opportunity is allowed to the assessee. Therefore, in the interest of
rendering substantial justice to the assessee, I set aside the orders of lower
authorities and remand the matter back to the file of the Assessing Officer
for adjudicating the same afresh after considering copies of Form 15G
4 ITA No. 438/CT K/ 2016 Asse ssment Year :20 12- 13 received by the assessee from the loan creditors and evidence of filing the
same before the CIT(A)within prescribed time by the assessee. The
assessee is also directed to file Forms 15G before the Assessing Officer and
evidence of filing the same before the CIT within due date as and when
called upon to do so. With these directions, the matter is remanded to the
file of the Assessing Officer for fresh adjudication.
In the result, the appeal filed by the assessee is allowed for statistical
purposes.
Order pronounced in the open court on 21/03/2017 in the presence of parties.
Sd/- (N.S Saini) ACCOUNTANT MEMBER
Cuttack; Dated 21/03/2017 B.K.Parida, SPS Copy of the Order forwarded to : 1. The appellant : Ramkishan Agarwal, Prop. Bansal Trading Co, Hatisalapada, Angul. 2. The Respondent. ITO, Angul Ward, Angul. 3. The CIT(A)-2, Bhubaneswar. 4. Pr.CIT-2, Bhubaneswar. 5. DR, ITAT, Cuttack 6. Guard file. //True Copy// BY ORDER,
SR.PRIVATE SECRETARY ITAT, Cuttack