https://www.taxtmi.com/caselaws?id=57983 The Tribunal ruled in favor of the assessee, finding that tax deduction at source for interest payments is mandatory only when the interest is actually paid, credited, or transferred to the payee. Merely recording a provision for interest liability in accounts does not trigger tax deduction obligations. The Tribunal held that the CIT (Appeals) erred in upholding penal interest imposed for non-deduction of tax at source, as per section 194A and a CBDT circular. Therefore, the Tribunal set aside the CIT (Appeals) order and deleted the penal interest imposed by the ITO, allowing the appeals filed by the assessee. en-us Mon, 22 May 1989 00:00:00 +0530 Wed, 15 Dec 2010 17:01:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57983 The Tribunal ruled in favor of the assessee, finding that tax deduction at source for interest payments is mandatory only when the interest is actually paid, credited, or transferred to the payee. Merely recording a provision for interest liability in accounts does not trigger tax deduction obligations. The Tribunal held that the CIT (Appeals) erred in upholding penal interest imposed for non-deduction of tax at source, as per section 194A and a CBDT circular. Therefore, the Tribunal set aside the CIT (Appeals) order and deleted the penal interest imposed by the ITO, allowing the appeals filed by the assessee. Case-Laws Income Tax Mon, 22 May 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57983