https://www.taxtmi.com/caselaws?id=762450 ITAT Mumbai ruled in favor of the assessee regarding interest levy under sections 201(1A) and 220(2). The tribunal held that where an employer has bonafide reasons for deducting lower TDS in earlier months and adjusts the shortfall in later months within the same financial year, section 192(3) protects against interest liability under 201(1A). The court found that mere short deduction initially, when corrected later, does not attract interest charges. Additionally, interest under section 220(2) was deleted as no demand notice under section 156 was issued. Both grounds raised by the assessee were allowed. en-us Wed, 27 Nov 2024 00:00:00 +0530 Mon, 02 Dec 2024 08:53:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762450 ITAT Mumbai ruled in favor of the assessee regarding interest levy under sections 201(1A) and 220(2). The tribunal held that where an employer has bonafide reasons for deducting lower TDS in earlier months and adjusts the shortfall in later months within the same financial year, section 192(3) protects against interest liability under 201(1A). The court found that mere short deduction initially, when corrected later, does not attract interest charges. Additionally, interest under section 220(2) was deleted as no demand notice under section 156 was issued. Both grounds raised by the assessee were allowed. Case-Laws Income Tax Wed, 27 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762450