https://www.taxtmi.com/caselaws?id=754249 The ITAT Kolkata ruled in favor of the assessee regarding TDS u/s 194A on delay interest charged by brokers. The tribunal held that interest paid on delayed purchase consideration payments does not constitute "interest" under Section 2(28A) of the Income Tax Act, as it was not incurred on borrowed capital during normal business operations. Section 194A applies only to interest on borrowed capital, not delayed payment charges. Following the precedent in Harbhajan Singh case, the tribunal directed the AO to delete the addition and allowed the assessee's appeal. en-us Mon, 08 Jan 2024 00:00:00 +0530 Thu, 20 Jun 2024 10:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754249 The ITAT Kolkata ruled in favor of the assessee regarding TDS u/s 194A on delay interest charged by brokers. The tribunal held that interest paid on delayed purchase consideration payments does not constitute "interest" under Section 2(28A) of the Income Tax Act, as it was not incurred on borrowed capital during normal business operations. Section 194A applies only to interest on borrowed capital, not delayed payment charges. Following the precedent in Harbhajan Singh case, the tribunal directed the AO to delete the addition and allowed the assessee's appeal. Case-Laws Income Tax Mon, 08 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754249