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2017 (12) TMI 534 - AT - Income TaxTDS u/s 194A - non deduction of tds on interest payment - assessee-in-default under section 201(1) - as per assessee TDS is not made as the amount involved is only surrender of interest to these concerns - interest liability calculation under section 201(1A) - Held that:- A.O. has given details at page-4 of the order in which the amount of interest paid and taxed under section 201(1) on interest paid and then interest liability is calculated. No infirmity have been pointed out in the order of the A.O. for calculating the interest liability payable by the assessee under section 201(1A). The assessee also failed to produce any order from the Competent Authority that assessee need not to make any TDS as the payee has paid the advance tax including the impugned transactions in the return of income. It is well settled law that charging of interest is mandatory under section 201(1A) of the I.T. Act. The provision for payment of interest are mandatory and automatic and interest has to be paid from the date on which the tax was chargeable till the date on which tax is actually paid. Even if recipient has paid the tax, for the short fall, the interest shall have to be paid by the assessee. Thus interest in question is chargeable. The assessee has failed to produce any details before the authorities below as well as before the Tribunal to point out any error in the computation of tax liability under section 201(1A) by the A.O. Therefore, in the absence of any evidence on record, in our view, the matter need not be remanded to the A.O. for fresh calculation of interest. - Decided against assessee.
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