Case Law Details
Sri Nidamanuri Nageswara Rao Korukonda Vs. ITO (ITAT Visakhapatnam)
The assessee has made the payment of Rs. 41,000/- as interest to the deductee Smt. N. Sarvari who happened to be the wife of the assessee. Though the amount was credited to her account in the books of accounts of the assessee, the payment was not made to her and before making the payment and filing the return of income, the assessee had obtained the form 15G and forwarded to the Ld. CIT. Since the recipient was not having taxable income, obtaining form 15G before making the payment would be sufficient compliance and hence, we hold that the addition u/s 40(a)(ia) of the Act does not attract.
Full Text of the ITAT Order is as follows:-
This appeal filed by the assessee is directed against order of the Commissioner of Income Tax (Appeals) {CIT(A)}, Rajahmundry vide ITA No. 101/0004/13-14/ITO W-3 RJY/2014-15 dated 30.1.2015 for the assessment year 2010-11.
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