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2017 (1) TMI 54 - HC - Income TaxInterest charge under Section 206C(7) - deductee assessee in the case of TDS had paid the tax or filed a “nil” return Held that:- A plain reading of the Section indicates that the assessee is liable under sub-section (7). This is, of course, on the basis that the provisions of Section 206C(1C) are applicable to the assessee. We have today, by a separate order and judgment decided [2016 (12) TMI 1534 - PUNJAB AND HARYANA HIGH COURT] which is also the assessee's case under Section 201 including sub-section (1A) thereof. On a parity of reasoning, this appeal also ought to be decided in favour of the Revenue. Moreover, even assuming that the judgment in Hindustan Coca Cola case (2007 (8) TMI 12 - SUPREME COURT OF INDIA ) applies to this case, the assessee's liability under subsection (7) cannot be applied on the basis thereof. The last sentence in paragraph No.10 quoted above makes it clear that where the deductee assessee in the case of TDS had paid the tax or filed a “nil” return. The demand for the principal amount cannot be enforced. However, this would not alter the liability to pay interest under Section 201(1A) or for penalty under Section 271(C). For the same reasons, therefore, even assuming that the liability to collect tax at source cannot be enforced on account of the deductee assessee, i.e. concessionaire in this case, having paid the tax, the liability for interest under sub-section (7) would not be affected. The appeals, are allowed, the impugned orders are set aside. The Tribunal shall, however, permit the assessee to raise its main contention namely that it was not liable to collect tax at source under Section 206 C (1C).
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