From,

…………………………………..

…………………………………..

Dated ………………………..

To,

The Assessing Officer,

Circle/Ward …………………….

Dear Sir/Madam,

Subject : Reply of Your Notice u/s 201(1A)

PAN No ……………

My client ……………………. is in receipt of your Notice dated ………….. u/s 201 of the Income-tax Act for Assessment Year …………………… and has instructed me to submit as follows :

Regarding the payment of interest, please note that out of …. persons to whom interest in excess of Rs ……….. was paid, …….. had submitted Form No. 15H before the end of the financial year. My client had duly submitted the same with the office of his CIT on…………..(acknowledgement) . Thus, in respect of the said ………. loan creditors my client was not required to deduct tax at Source u/s 194A, in view of the provisions contained in section 197A(1A) .

So far the payment of interest to the remaining ……. parties viz, ……… and ……… is concerned, tax was duly deducted and also deposited in the ac-count of Central Government in time as per details contained in Annexure.2 and copy of paid challans are enclosed as Annexure.3, 4 and 5.

In case of deduction of tax from rent paid by my client to ………., I would like to bring to your notice that tax has already been recovered by the department from the said ……… (refer Annexure 7 and 8) . Therefore the amount of the said tax cannot be recovered again from my client again in view of the decision of Bombay High Court in the case of CIT Vs. Mahindra and Mahindra Ltd. [2000] 242 ITR (St) 187 in which department’s SLP was rejected My client also relies on the following decisions

CIT Vs. Divisional Manager, New India Assurance Company Ltd. [1983] 140 ITR 818 (MP) .

CIT Vs. Kannan Devan Hilly Produce Company Ltd. [1986] 161 ITR 477 (Ker.) .

Further in view of the fact that my client had acted bonafide in good faith and in view of the fact that the landlord has already paid the tax, it is prayed that no interest should be charged u/s 201 (1A) .

So far payment of rent to ………. is concerned, I would like to submit that the tax was deducted @5 per cent (instead of normal rate @15 per cent) in accordance with the certificate issued by the A.O. of ……… on…………………….A copy of the said certificate in Form No. 15AA is enclosed for your kind perusal, Thus my client did not commit any default in respect of the tax deduction at lower rate.

Hope you would be satisfied with the above. Should you require any other information or detail, my client would be pleased to submit the same.

For further details, visit WWW.COMPANYMITRA.COM.”

Thanking you

Yours faithfully

……………………….