TAX TALK-23.01.2012-THE HITAVADA
TAX TALK-23.01.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “NON SUBMISSIONS OF FORM NO. 15H WOULD NOT ATTRACT DISALLOWANCE U/S 40(a)(ia)” Query 1] Sir, in our case disallowance of expenses has been made u/s. 40 (a) (ia) of Income Tax Act for the A.Y. 2009-10 on the only ground that a copy of form No. 15H was not filed in the office of CIT as required U/s. 197A(2). The original form No. 15H received from the creditors were filed during the assessment proceeding which is evident from the Assessment Order itself. Whether disallowance U/s. 40(a) (ia) of Interest Expenses can be made by ITO on the facts stated above? Please enlighten of the problem supported by some judicial citations. [ maheshkhushalani59@yahoo.com ] Opinion: 1. Various sub-sections of Section 197A require a declaration to be filed by the payee to the payer and the same is filed, the payer has no choice except to desist from deducting tax from the payment. The sub-section uses the word “shall” ...