https://www.taxtmi.com/caselaws?id=797166 Section 194N places the obligation to deduct tax at source on the banking company making cash payments beyond the prescribed threshold, while Section 271C penalises the person that fails to make that deduction. A customer receiving cash is not liable for the bank's deduction failure or related penalty. A bank therefore lacks statutory authority to impose a lien on a customer's current account to recover alleged tax deducted at source on cash withdrawals, particularly where no tax-authority direction exists. The lien must be released and account operations permitted upon furnishing relevant income-tax returns. en-us Tue, 14 Jul 2026 00:00:00 +0530 Tue, 18 Aug 2026 08:35:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797166 Section 194N places the obligation to deduct tax at source on the banking company making cash payments beyond the prescribed threshold, while Section 271C penalises the person that fails to make that deduction. A customer receiving cash is not liable for the bank's deduction failure or related penalty. A bank therefore lacks statutory authority to impose a lien on a customer's current account to recover alleged tax deducted at source on cash withdrawals, particularly where no tax-authority direction exists. The lien must be released and account operations permitted upon furnishing relevant income-tax returns. Case-Laws Income Tax Tue, 14 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797166