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2011 (9) TMI 224 - HC - Income TaxNon deduction of TDS - Whether the Tribunal was right in holding that Sec.201(1) and 201(1A) would not be applicable in cases where the payee was found to have suffered a loss - As such, the loss return filed by the payee company cannot be treated as a circumstance to be taken in favour of the assessee company from not applying the provisions of Section 201(1A) of the Income Tax Act - However, as far as levy of interest is concerned, it being an automatic one, the order of the Tribunal merits to be set aside as far as this aspect of the question is concerned - Accordingly, the assessment order regarding levy of interest has to undergo necessary modification to the effect that interest under Section 201(1A) of the Income Tax Act has to be calculated from the date on which tax should have been deducted to the date on which the payee should have filed its return under the provisions of the Income Tax Act. Whether assessee was justified in deducting tax at a lower rate without getting an authorisation or certificate for deduction of tax at a lower rate - As the same is no longer res integra, by reason of the decision of the Apex Court in the case of Transmission Corporation of A.P. Ltd., and another V. Commissioner of Income-Tax[1999 (8) TMI 2 - SUPREME Court], wherein, it was held that in the absence of any certificate obtained as given u/s 195(2) on the composite amount made by the assessee to the payee, TDS ought to have been made on the entire amount - Hence, the said question stands answered in favour of the Revenue.
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