RAMKISHAN AGARWAL,ANGUL vs. ITO, ANGUL WARD, ANGUL

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.

“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.

“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/-.

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.

submission of ld A.R. of the assessee.

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.

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