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2012 (7) TMI 581 - AT - Income TaxTDS - Liability of the payer to make deduction of tax – Held that:- Payment made by the assessee is purely reimbursement of expenses which in no way fall within the ambit of the provisions of TDS - Appellant was not liable for deduction of tax as per the provisions of section 194J of the Act, the assessee should not be treated as ‘assessee in default under section 201(1) of the Act - Assessing Officer directed to delete the demand Regarding interest u/s. 201(IA) – Held that:- original payment was made by the sister concern of the assessee to Diamond Trading Company on behalf of the assessee and subsequently the assessee has reimbursed the amount to the sister concern - once the TDS was deducted by the sister concern and deposited to the government account, then no subsequent TDS is required to be deducted on the same amount - Since the payment was not subjected to TDS provisions, then the liability of interest also does not arise - there is no loss of revenue because the original payment was already subjected to tax and the amount in question is only reimbursement – In favor of assessee
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