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2015 (6) TMI 201 - AT - Income TaxNon deduction of TDS - interst paid to Government - overriding title on an income - assessee in default u/s 201 and also levy of interest u/s 201(1A) - whether the assessee falls within the ambit of exclusion clauses provided in sub section 3 of section 194A(3)(iii)(f)? - Held that:- The title over the interest income at the time of generation from the assessee rest with the Govt. and not KUIDFC. Thus, the interest in practical was paid to the Govt. and section 196 provide that notwithstanding anything contained in the foregoing provisions of this Chapter, no deduction of taxes shall be made by any person from any sum payable to the Govt. The assessee was not required to deduct the TDS on the payments made to the Govt. Considering all these aspects, we are of the view that the Assessing Officer has erred in treating the assessee in default. Consequently the demand raised by the Assessing Officer by virtue of order passed u/s 201 and the interest charged u/s 201(1A) is deleted and the orders are quashed - Decided in favour of assesse.
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