Kindly clarify whether Interest u/s 201(1A) of the Act is not chargable to the deductor in light of the following cases: Bennett Coleman & Co Ltd Vs 1TO [1984 (11) TMI 58 - BOMBAY High Court], ICICI Bank Limited vs. Dy. CIT [2014 (1) TMI 706 - ITAT LUCKNOW], Uttar Pradesh Financial Corporation Versus ITO. (TDS) -5(2), Kanpur etc.
In other words, is the company liable to pay interest charged on short deduction of TDS for earlier years without any evidence of the fact that the income on which TDS was deducted has not been taxed so far in the hands of the recipient. What stand should the deductor company take
Company Liable for Interest on Short TDS Deduction if Recipient's Tax Unpaid, Per Section 201(1A) of Income Tax Act A query was raised about whether a company is liable to pay interest under Section 201(1A) of the Income Tax Act for short deduction of TDS when there is no evidence that the income has been taxed in the recipient's hands. Citing cases such as Bennett Coleman & Co Ltd and ICICI Bank Limited, it was discussed that if the recipient does not pay the tax, the company is liable for interest. It was suggested to confirm if the recipient has paid the differential tax, which could justify waiving the interest. The responses agreed on this approach. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
