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2018 (8) TMI 2110 - AT - Income TaxDemand u/s 201(1) and 201(1A) - assessee’s had not remitted the tax deducted at source on certain payments made - Assessee argued recipient of the income has filed loss returns of income and no taxes were payable to the government - HELD THAT:- As fairly agreed to by the counsel of both the assessee and Revenue that the issue before us i.e whether the assessee’s are liable to pay interest u/s 201(1A) of the Act has been considered at length and held against the assessee by the decision of the co-ordinate bench of this Tribunal in the case of power and control systems in holding there is a difference between case where the amount paid is chargeable to tax but the payee has suffered loss or does not have positive income and a case where the payments made are not chargeable to tax at all. The argument made on behalf of the assesee can be considered only where the payment in question is not chargeable to tax at all. But in a case where payment in question is chargeable to tax but the payee has suffered loss or does not have positive income then the person making the payment is obliged to deduct tax at source. The fact that the payee does not have positive income will absolve the person making payment from being treated as ‘an assessee in default’ for not deducting tax at source but cannot absolve the payee from paying interest u/s 201(1A) Respectfully following the aforesaid decision Research Enterprises [1998 (12) TMI 18 - MADRAS HIGH COURT] and CIT Vs. CIT Vs. Chennai Metropolitan Water Supply and Sewerage Board [2011 (9) TMI 224 - MADRAS HIGH COURT] and Hon’ble Punjab & Haryana High Court in Punjab and Infrastructure Development [2017 (8) TMI 78 - PUNJAB AND HARYANA HIGH COURT] we concur with and uphold the view of the ld CIT(A). Consequently, all four appeals of these two assessee’s are dismissed.
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