https://www.taxtmi.com/caselaws?id=769747 ITAT Mumbai held that a Securitisation Trust was not required to deduct TDS under section 194LBC on Excess Interest Spread payments to the originator. The tribunal found that EIS payments were surplus distributions per waterfall mechanism, not investment returns. Following precedent in Venus Trust case, the court determined that for section 194LBC applicability, the originator must be an investor and income must relate to Securitisation Trust investment. Since EIS was merely surplus sharing as reward for creating assignable loan receivables pool, not investment proceeds, TDS liability under section 194LBC was inapplicable. Tax liability and interest under sections 201(1) and 201(1A) were deleted, allowing the assessee's appeal. en-us Fri, 25 Apr 2025 00:00:00 +0530 Thu, 01 May 2025 08:46:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769747 ITAT Mumbai held that a Securitisation Trust was not required to deduct TDS under section 194LBC on Excess Interest Spread payments to the originator. The tribunal found that EIS payments were surplus distributions per waterfall mechanism, not investment returns. Following precedent in Venus Trust case, the court determined that for section 194LBC applicability, the originator must be an investor and income must relate to Securitisation Trust investment. Since EIS was merely surplus sharing as reward for creating assignable loan receivables pool, not investment proceeds, TDS liability under section 194LBC was inapplicable. Tax liability and interest under sections 201(1) and 201(1A) were deleted, allowing the assessee's appeal. Case-Laws Income Tax Fri, 25 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769747