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2012 (10) TMI 840 - AT - Income TaxInterest on short payment of advance tax – failure on the part of payer to deduct TDS u/s 195(2) - Had the payer made the deduction of tax at the appropriate rate, the net tax payable by the assessee would have been Nil - Held that:- Following the decision in case of Jacabs Civil Incorporated / Mitsubishi Corporation (2010 (8) TMI 37 - DELHI HIGH COURT) that once it is found that the liability was that of the payer and the said payer has defaulted in deducting the tax at source, the Department is not remedy-less and, therefore, can take action against the payer u/s 201 and compute the amount accordingly. No doubt, if the person (payer) who had to make payments to the non-resident had defaulted in deducting the tax at source from such payments, the non-resident is not absolved from payment of taxes thereupon. However, in such a case, the non-resident it liable to pay tax and the question of payment of advance tax would not arise. This would be clear from the reading of Sec 191 along with Sec. 209 (1) (d). Therefore, it would not be permissible for the revenue to charge any interest u/s 234 B. In favour of assessee
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