https://www.taxtmi.com/caselaws?id=13547 The HC allowed the appeals, overturning the Tribunal's orders, and reinstated the CIT's decision, confirming the respondent as an "assessee in default" under section 201 of the Income-tax Act. The respondent was held liable for interest under section 201(1A) until the tax was paid by the deductee, TFCI. The court emphasized that interest is compensatory and mandatory, and the respondent's bona fide belief regarding tax exemption was irrelevant to the default determination. The court clarified that tax cannot be recovered twice and interest liability ceases once the tax is paid. en-us Fri, 02 Jun 2006 00:00:00 +0530 Fri, 23 Feb 2024 20:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13547 The HC allowed the appeals, overturning the Tribunal's orders, and reinstated the CIT's decision, confirming the respondent as an "assessee in default" under section 201 of the Income-tax Act. The respondent was held liable for interest under section 201(1A) until the tax was paid by the deductee, TFCI. The court emphasized that interest is compensatory and mandatory, and the respondent's bona fide belief regarding tax exemption was irrelevant to the default determination. The court clarified that tax cannot be recovered twice and interest liability ceases once the tax is paid. Case-Laws Income Tax Fri, 02 Jun 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13547