https://www.taxtmi.com/highlights?id=87199 HC held that under Section 194A of Income Tax Act, 1961, the tax deductor was not liable for immediate penalty when TDS was not deducted from interest/finance charges paid to NBFCs. The AO must first provide an opportunity to the appellant to establish that the tax deductee has paid applicable taxes. The lower appellate authorities' orders were set aside, and the matter was remanded to the AO for fresh consideration, requiring a fair hearing to the appellant and verification of whether the NBFCs incorporated the receipts in their accounts and paid corresponding taxes. en-us Mon, 07 Apr 2025 08:32:53 +0530 Mon, 07 Apr 2025 08:32:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=87199 HC held that under Section 194A of Income Tax Act, 1961, the tax deductor was not liable for immediate penalty when TDS was not deducted from interest/finance charges paid to NBFCs. The AO must first provide an opportunity to the appellant to establish that the tax deductee has paid applicable taxes. The lower appellate authorities' orders were set aside, and the matter was remanded to the AO for fresh consideration, requiring a fair hearing to the appellant and verification of whether the NBFCs incorporated the receipts in their accounts and paid corresponding taxes. Highlights Income Tax Mon, 07 Apr 2025 08:32:53 +0530 https://www.taxtmi.com/highlights?id=87199