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2011 (10) TMI 17 - HC - Income TaxNon deduction of TDS or less deduction of TDS on salary - Valuation of perquisite - Assessee in default - Interest u/s 201 - In view of the AO Assessee had committed a default by lower deduction of TDS from the total salary and was thus liable to be treated in default under Section 201(1) and liable for interest under Section 201(1A) of the Income Tax Act, 1961. - Held that:- TDS has been deducted on “estimated income” of the employee, and the employer was not expected to step into the shoes of the AO and determine the actual income. - on the basis of the accounts maintained by the Assessee, the cost of education was less than Rs. 1,000/- per month per child and, therefore, the Assessee was also entitled to the benefit of the proviso to Rule3(5) of the Rules, 1962. - ITAT was correct in coming to the finding that these were not fit cases for passing orders under Section 201(1) and consequently levying interest under Section 201(1A) of the Act.
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