https://www.taxtmi.com/caselaws?id=272502 Section 201 demand for tax not deducted at source can be avoided only if the deductor shows that the deductee has already paid the tax or offered the income to tax. The Court treated section 191 and the CBDT circular as confirming that recovery from the deductor should not be enforced once that fact is established, though interest under section 201(1A) may continue until the deductee's payment date. It also held that the deductee's payment or taxability is a defence for the assessee to prove, and the assessing officer is not required to investigate it first. The challenge therefore failed and proceedings under section 201 were upheld. en-us Mon, 09 Feb 2015 00:00:00 +0530 Sun, 06 May 2018 16:02:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=272502 Section 201 demand for tax not deducted at source can be avoided only if the deductor shows that the deductee has already paid the tax or offered the income to tax. The Court treated section 191 and the CBDT circular as confirming that recovery from the deductor should not be enforced once that fact is established, though interest under section 201(1A) may continue until the deductee's payment date. It also held that the deductee's payment or taxability is a defence for the assessee to prove, and the assessing officer is not required to investigate it first. The challenge therefore failed and proceedings under section 201 were upheld. Case-Laws Income Tax Mon, 09 Feb 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272502