https://www.taxtmi.com/caselaws?id=768420 Chhattisgarh HC held that before imposing liability under Section 201(1) for failure to deduct TDS on interest/finance charges paid to NBFCs under Section 194A, the AO must provide opportunity to the tax deductor to establish that taxes have been paid by the deductee. The appellant failed to deduct TDS on payments to NBFCs and was deemed in default. However, the AO directly imposed liability without affording opportunity to prove that NBFCs had paid taxes on received amounts. Orders of AO, CIT(A), and ITAT were set aside. Matter remitted to AO for fresh consideration with proper hearing opportunity. en-us Thu, 20 Mar 2025 00:00:00 +0530 Mon, 07 Apr 2025 08:32:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768420 Chhattisgarh HC held that before imposing liability under Section 201(1) for failure to deduct TDS on interest/finance charges paid to NBFCs under Section 194A, the AO must provide opportunity to the tax deductor to establish that taxes have been paid by the deductee. The appellant failed to deduct TDS on payments to NBFCs and was deemed in default. However, the AO directly imposed liability without affording opportunity to prove that NBFCs had paid taxes on received amounts. Orders of AO, CIT(A), and ITAT were set aside. Matter remitted to AO for fresh consideration with proper hearing opportunity. Case-Laws Income Tax Thu, 20 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768420