South Indian Bank Limited Vs ITO (Kerala High Court)
Kerala High Court held that Bank is not required to deduct TDS on interest paid to senior citizen who has provided Form 15H. Accordingly, Bank cannot be considered as assessee in default for non-deduction of such TDS.
Facts- The appellant-assessee had a statutory duty to deduct tax at source as against the interest paid by it on fixed deposits with reference to the provisions of Section 194A of the Income Tax Act, 1961. Notably, on the basis of Form 15H declarations furnished by the depositors, the appellant has not deducted tax at source during the relevant years. Proceedings were later initiated proposing to treat the appellant as an “assessee in default” for the failure to deduct TDS on the interest income paid as above. Brushing aside the objections raised by the appellant, it was treated as an “assessee in default” by separate orders, demanding tax under sub-section (1) and interest under sub-section (1A) of Section 201 of the Act. The first appeals against the afore orders were rejected by the Commissioner of Income Tax (Appeals), on account of which further appeals were instituted before the Income Tax Appellate Tribunal, Cochin Bench. The Tribunal, by the impugned common order dated 22.05.2024, having rejected the appeals, the appellant has instituted the captioned appeals under Section 260A of the Act.
