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2014 (1) TMI 1543 - AT - Income TaxDemand raised u/s 201 of the Act – Interest charged u/s 201(1A) of the Act – Non-deduction of TDS u/s 194A of the Act - Held that:- The Government shall not be entitled to recover the said amount, if the recipient has declared the said amount as his income in the income tax return filed by him and paid the tax due - Thus, it is seen that the objective of provisions of sec. 201 is only to compensate the Government for the failure of an assessee to deduct or pay the TDS amount - The provisions of sec. 40(a)(ia) and sec. 201 operate on different objectives - the provisions of sec. 40(a)(ia) do not override the provisions of sec. 201 of the Act – thus, the assessee is liable to deduct tax at source on interest payments, even if it has not claimed the same as deduction while computing its total income, in which case the revenue is entitled to initiate proceedings u/s 201 of the Act for such failure - The assessee has failed to adduce any evidence to show that the recipients of interest amounts have declared the same in their income tax returns and paid tax due – the order of the CIT(A) upheld – Decided against Assessee.
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