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2017 (4) TMI 46 - AT - Income TaxLevy of interest under Section 201(1A) - non deduction of TDS under Section 194A (3) in respect of the interest on the deposits - Held that:- Facts in the present case clearly show that M/s VTU has filed an application for retrospective recognition under Section 12AA of the Act to the CBDT under Section 119(2B) of the Act. In the event the CBDT accepts the claim of the assessee, then the liability of the assessee under Section 201(1) and 201(1A) of the Act would efface. This being so in the interest of natural justice the issues in these appeal are restored to the file of the Assessing Officer with the following directions:- AO is to await the decision of the CBDT in respect of the petition filed by the VTU in respect of the retrospection grant of registration under Section 12AA of the Act. In the event the application filed by the VTU is not considered favourably by the CBDT then in respect of the levy under Section 201(1) the Assessing Officer is to re-adjudicate the issue in line with the decision in the case of Hindustan Coca Cola Beverage Private Limited as referred (2007 (8) TMI 12 - SUPREME COURT OF INDIA ), as also after considering the impact of the certificate issued by the deductee (VTU) in form 26A. In respect of levy of interest under Section 201(1A) of the Act the interest is to be computed for the period from the date from which the tax was deductable to the date of filing of the return by the deductee (VTU). This is because once any income is liable for TDS then in the hands of the deductee no interest under Section 234A, 234B & 234C can be levied in respect of such income. Therefore till such income is disclosed by the deductee in its return the liability of the tax rests on the deductor. Once the deductee has filed his return disclosing such income then for such return to become valid the taxes of such return should have been paid and the liability in respect of such taxes and the credit for such taxes goes to the deductee only.
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