https://www.taxtmi.com/caselaws?id=64965 Interest under section 201(1A) is compensatory and is meant to offset loss to the Revenue from failure to deduct tax at source. The text explains that tax deduction under Chapter XVII is only a recovery mechanism, and sections 198 and 199 treat deducted tax as payment on behalf of the payee. Where the recipient has already paid advance tax on the same income, the corresponding tax liability is discharged and no real revenue loss remains. On that basis, interest for the matching period may be reduced to avoid double recovery and unjust enrichment, and the Revenue's challenge failed. en-us Fri, 13 Mar 1992 00:00:00 +0530 Fri, 11 Feb 2011 13:51:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64965 Interest under section 201(1A) is compensatory and is meant to offset loss to the Revenue from failure to deduct tax at source. The text explains that tax deduction under Chapter XVII is only a recovery mechanism, and sections 198 and 199 treat deducted tax as payment on behalf of the payee. Where the recipient has already paid advance tax on the same income, the corresponding tax liability is discharged and no real revenue loss remains. On that basis, interest for the matching period may be reduced to avoid double recovery and unjust enrichment, and the Revenue's challenge failed. Case-Laws Income Tax Fri, 13 Mar 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64965