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2016 (2) TMI 30 - AT - Income TaxNon deduction of tax at source in respect of interest on debenture u/s 193 - Provision made in the books of account versus Actual liability - Held that:- Undisputedly no income has accrued to or has been received by then debenture holders under the provisions of the section 193 of the Act. At the end of tax deducting is requirement of paying any income by way of interest on security but above facts indicate that there was no such requirement at the end of the assessee for paying any income by way of interest on security to debenture holders. In view of precarious financial position of the assessee as stated above the provision of such interest was made in view of compulsory requirement of amounting standards as well as Companies Act, 1956 hence, assessee was rightly held not responsible for paying any income by way of interest on securities to debenture holders in such situation provisions of section 193 of the Act are not applicable. In this background CIT(A) was justified in holding that assessee has not committed any default in this regard. Thus, the assessing officer has rightly been directed not to treat as 'assessee in default' accordingly, he was rightly directed to delete the payment of ₹ 2,92,49,251/- as worked out under provisions u/s 201(1)/201(1A) of the Act. This reasoned factual finding of CIT(A) need not interfere from our side we uphold the same. As a result, appeal filed by revenue is dismissed. - Decided in favour of assessee
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