Case Law Details
Allahabad Bank Vs ITO (ITAT Delhi)
Conclusion: Asessee-bank had not deducted TDS under section 194A in respect of customers who had provided Form No. 15G and 15H as the prime responsibility relating to TDS deduction u/s 201 was of the recipient assessee to pay the tax directly once they filed From No. 15G/15H and any tax liability would be held as pending in recipient assessee’s cases and hence Section 201 of the Act could not be invoked as it was a recovery provision.
Held: During the course of its financial business, assessee having deposits on which the interest was paid. As per the provisions of Section 194A, interest on TDS had been deducted from time to time and deposited with the Government account. During the course of enquiry made u/s 133(6), AO came to know that out of the persons, who have filed Form No. 15G/ 15H, were enjoying interest more than the taxable limit prescribed under the IT Act and accordingly the Bank authorities should not accept Form No. 15G/15H and then thereafter, without issuing a proper notice u/s 201 of the Act, passed the order u/s 201 and held the bank as assessee in default in terms of Section 201(1) in relation to the persons who were enjoying interest on their deposits more than the taxable limit, the list whereof had been given itself in the combined order passed u/s 201/201(1A) for the Financial Years 2013-14 and 2014-15., thereby ordering to recover the following demand from assessee. It was held that assessee bank has not deducted TDS in respect of customers who have provided Form No. 15G and 15H of the Act under the statute as provided by the Income Tax Act. The customers who have provided Form No. 15G/15H has specifically requests through these forms that TDS should not be deducted on their FDs/respective withdrawals. The prime responsibility relating to TDS deduction u/s 201 is of the recipient assessee to pay the tax directly once they filed From No. 15G/15H and any tax liability will be held as pending in recipient assessee’s cases and hence Section 201 of the Act cannot be invoked as it is a recovery provision. Therefore, the proceedings u/s 201 had been quashed.
FULL TEXT OF THE ORDER OF ITAT DELHI
These two appeals are filed by the assessee against order dated 20/09/2016 passed by CIT (A)-Ghaziabad for assessment years 2014-15 & 2015-16 respectively.
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Whether for Annual Rental Income of Rs470000/
15 G can be filed with Bank by Landlord