No interest allowance u/s 40(a)(ia) if deductee furnished Form 15G or 15H

JCIT Vs Karnataka Vikas Grameena Bank (ITAT Bangalore) Conclusion: Disallowance of interest paid to persons who furnished Form 15 G and Form 15 H  should not be made u/s 40a(ia) for non deduction of TDS as the requirement of filing of Form 15G and 15H with the prescribed authority viz., CIT was only procedural and that could not result in a disallowance u/s 40a(ia). Held:During the assessment proceedings, AO noticed that assessee had paid total interest of Rs 411,29,54,190/- during the FY 2011-12. Out of the above a sum of Rs.80,49,49,266/- was interest paid above Rs.10,000/- to each of the ...