https://www.taxtmi.com/caselaws?id=13079 Interest under s. 201(1A) for failure to deduct TDS under s. 194C turns on whether the Revenue suffered any deprivation of tax where the payee-contractor had already discharged its tax liability. The HC held that when the contractor had admittedly paid its due tax, including advance tax and self-assessment tax (in fact in excess), the Revenue incurred no loss from the payer's default, and charging interest on the full notional TDS would confer an undue benefit by awarding interest on tax already paid on time. Consequently, the contractor's tax payments had to be set off against the gross TDS amount for computing interest under s. 201(1A), and the question was answered in favour of the assessee and against the Revenue. en-us Thu, 14 Jun 2001 00:00:00 +0530 Mon, 22 Dec 2025 11:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13079 Interest under s. 201(1A) for failure to deduct TDS under s. 194C turns on whether the Revenue suffered any deprivation of tax where the payee-contractor had already discharged its tax liability. The HC held that when the contractor had admittedly paid its due tax, including advance tax and self-assessment tax (in fact in excess), the Revenue incurred no loss from the payer's default, and charging interest on the full notional TDS would confer an undue benefit by awarding interest on tax already paid on time. Consequently, the contractor's tax payments had to be set off against the gross TDS amount for computing interest under s. 201(1A), and the question was answered in favour of the assessee and against the Revenue. Case-Laws Income Tax Thu, 14 Jun 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13079