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2017 (8) TMI 238 - HC - Income TaxTDS u/s 194C - assessee in default - failure to deduct tax or short deducted tax - Held that:- It is an important aspect to be examined whether recipient-assessee has directly paid tax or has no liability of tax at all. Since this aspect was not examined by the assessing authority, therefore, in our view, the Tribunal has rightly remanded the matter to the assessing authority to examine this aspect. If the assessing authority finds that the recipient-assesses, i.e., SAL was not liable to pay any tax during the relevant assessment year or has actually paid tax, the assessee cannot be held to be "assessee in default" merely for the reason that it has failed to deduct tax or has short deducted tax and for that reason alone the assessing authority cannot raise demand of tax from the assessee. We find that similar question has also been considered recently by this court in Ghaziabad Development Authority v. Union of India (2016 (8) TMI 1240 - ALLAHABAD HIGH COURT). - Decided against the Revenue
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