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2016 (8) TMI 1474 - AT - Income TaxInterest u/s 201(1A) - failure of the Appellant to deduct tax at source even when the deductee was not liable to pay Income Tax on account of losses - HELD THAT:- In the instant case, it is proved beyond doubt that the deductee does not have any liability to pay tax as could be evident from the scrutiny assessment order u/s 143(3) of the Act for the Asst Year 2004-05 enclosed in pages 50 to 52 of the paper book. This fact was also placed by the assessee before the ld AO and he had also noted the same in the assessment order. We hold in the instant case, there is no tax due to the exchequer and accordingly there is no question of compensating the same by way of interest. We find that this aspect is also dealt by the Hon’ble Supreme Court in the case of CIT s Eli Lilly & Company (India) (P) Ltd & Ors [2009 (3) TMI 33 - SUPREME COURT] - Decided in favour of assessee.
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