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2011 (9) TMI 637 - HC - Income TaxTDS - Assessee borrowed money from the creditors however no interest was paid as he was running under loss, but for complying with provisions of Companies Act, a book entry was passed in his account and expenditure was claimed - Interest levied under Sec 201 read with Sec 201(A) - Held That:- liability of paying tax is that of the creditor and a statutory duty is cast on the debtor to deduct tax and make payments. The revenue cannot collect tax on interest from both the principal and the agent. Exercise is possible only after verifying the records of both the assessee and the creditor of the assessee. Case remanded back. Levy of interest for failure to deduct and pay TDS - retrospective amendment - section 201 - held that:- even though at the relevant years, as Section 194A read with Section 201 stood, there was no liability to pay interest on the assessee by virtue of retrospective operations, he is liable to pay interest. Therefore, the said finding recorded by the authorities concurrently cannot be found fault with. Hence, the first substantial question of law is answered in favour of the revenue and against the assessee.
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