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2020 (1) TMI 249 - AT - Income TaxTDS u/s 194 - interest on deposit to Karnataka Building & Other Construction Workers Welfare Board - assessee in default for not deducting tax at source - HELD THAT:- As brought to our notice by the ld. Counsel for the assessee that the organization to which the assessee paid interest viz., Karnataka Building & Other Construction Workers Welfare Board was an entity falling within section 194A(3)(iii)(f) of the Act and therefore there was no obligation on the part of assessee to deduct tax at source on payment of interest to the aforesaid organization. Reliance was placed on the order of the Tribunal in the case of Canara Bank v. ITO [2015 (9) TMI 1674 - ITAT BANGALORE] wherein the issue was decided in favour of the assessee. Since this Tribunal has already taken a view that the person to whom interest was paid was falling within the ambit of section 194A(3)(f) of the Act, there cannot be any order treating the assessee as an assessee in default u/s. 201(1) and also levying interest u/s. 201(1A) of the Act. We accordingly cancel the orders passed u/s. 201(1) & 201(1A) of the Act and allow the appeal of the assessee.
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