Section 194A, 194H of Income tax Act, 1961—TDS— In the instant case, the assessee herein is a bank. The revenue carried out survey operations u/s 133A of the Act. It was noticed that the assessee has not deducted tax at source u/s 194A of the Act from the interest payment made by it on term deposits in some cases. In some other cases, it was noticed that the assessee had deducted TDS @ 10% from interest payment made to some of the depositors who have not furnished PAN No., in which case, the TDS is required to be deducted @ 20%.

The assessee submitted that it had obtained Form No.15G and Form No.15H from the depositors and on the strength of the same, it had not deducted tax at source. It was noticed that the assessee bank has not furnished one copy of Form No.15G and Form No.15H to the jurisdictional Commissioner of Income tax as required under the Act.

Held that— In the case of Punjab National Bank (supra), it has been held that non-mentioning of PAN in Form No.15G and Form No.15H is only a technical breach, when the payees were having PAN.

Accordingly we set aside the order passed by Ld CIT(A) and restore this issue to the file of the AO with the direction to examine this issue afresh.

The next issue relates to non-deduction of tax at source from the Commission payment made to NPCI.

Held that— we hold that the assessee is not liable to deduct tax at source from the payments made NCPI towards NFS charges. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and delete the demand raised on this payment.[THE KARUR VYSYA BANK LTD., BELLARY BRANCH, BELLARY. VERSUS THE ASST. COMMISSIONER OF INCOME-TAX TDS CIRCLE, HUBLI.] [2019] 18 ITCD Online (9) [ITAT BANGALORE]