No disallowance of interest expenditure u/s. 40(a)(ia) for non furnishing form 15G / form 15H

Ravindra Dayanand Sankeshwar Vs DCIT (ITAT Bangalore)

Assessee, an individual/ proprietor claimed expenses  towards interest  on unsecured loans. 30% disallowance of interest expenditure for non-deduction of TDS was upheld by CIT(A) holding that Act requires the forms to be submitted before the competent authority during the year under consideration and not at the time scrutiny assessment to get the benefit of allowance u/s 40(a)(ia).

Assessee had filed the necessary form 15G/15H from the unsecured creditors  in the  paper book filed with the Tribunal and contended that  principally no disallowance can be made u/s. 40(a)(ia) even though assessee failed to submit form 15G/H before the assessing authority placing  reliance on the decision of Hon’ble Karnataka High Court in case of CIT vs. Sri Marikamba Transport Co. reported in (2015) 57 taxmann.com 273 which was followed by the Coordinate Bench of Bangalore Tribunal in   JCIT vs. Karnataka Vikas Grameena Bank reported in (2018) 93 taxmann.com 256.

Revenue contended  that:

– Form 15H/ 15G filed by the assessee pertains to FY 2016-17

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