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2010 (4) TMI 852 - AT - Income TaxNon deduction of TDS u/s 194C - transportation - held that:- the learned counsel is mixing up two issues viz., disallowance under sec.40(a)(ia) and demand raised by an order under sec.201(1) of the Act. Where the payee has already paid tax, no demand can be raised against the payer under sec.201(1) of the Act. But, non-deduction of tax where it is statutorily required, will certainly invite all the consequences under the Act irrespective whether tax has been paid by the payee or not. Of course, where the payee has already paid tax and if the same amount is disallowed in the payer’s case, it will certainly amount to taxing the same amount twice. However, the legislature has taken care to remedy this situation by providing that the sum disallowed will be allowed as a deduction in the year of payment.
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