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HC set aside a tax deducted at source (TDS) notice under Section 201(1) where the petitioner demonstrated no failure to deduct or deposit tax. The court found no material evidence suggesting non-compliance with TDS requirements. The petitioner successfully established through a rejoinder affidavit that tax was appropriately deducted at a lower rate for specified payments. Consequently, the court determined that no further proceedings under Section 201 were justified, effectively nullifying the impugned notice and protecting the petitioner from unwarranted tax scrutiny.