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2011 (7) TMI 635 - AT - Income TaxInterest u/s 201(1A) - assessee in Default - failure to deduct and pay tax at average rate during each month on estimated income of its employees, however deficiency made good by deducting the balance at the end of the Financial year - Held that:- Intention of section 192(3) is not that employer can casually take deduction of tax from payments of salary in different months and resorts to lump sum deduction at the end of the FY for making good the deficiency. The employer has to find out immediately at the time of subsequent payment to the employee whether there was deficiency of deduction of tax in the preceding month. He has to make good such deficiency in the subsequent following month or otherwise has to show his bona fide. Matter restored to file of AO to find out whether there was a bona fide in short deduction and if not, assessee would be liable to pay interest. If there was bona fide and shortfall in every month was nominal which was made good at the end of the year then, no mala fide need to be seen - Decided in favor of assessee for statistical purposes.
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