https://www.taxtmi.com/caselaws?id=417859 Where the deductee had already returned the interest income and paid the corresponding tax, the deductor could not be treated as an assessee in default for short deduction of tax at source. The governing principle was that tax already recovered from the deductee cannot be recovered again from the deductor, and the CBDT circular also precluded enforcement of a section 201(1) demand once the tax payment by the deductee was verified. The related interest under section 201(1A) was consequential to the principal demand and therefore also failed. The tax demand and associated interest were deleted. en-us Tue, 25 Jan 2022 00:00:00 +0530 Thu, 03 Feb 2022 07:37:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=417859 Where the deductee had already returned the interest income and paid the corresponding tax, the deductor could not be treated as an assessee in default for short deduction of tax at source. The governing principle was that tax already recovered from the deductee cannot be recovered again from the deductor, and the CBDT circular also precluded enforcement of a section 201(1) demand once the tax payment by the deductee was verified. The related interest under section 201(1A) was consequential to the principal demand and therefore also failed. The tax demand and associated interest were deleted. Case-Laws Income Tax Tue, 25 Jan 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=417859