Dismissing the appeal of the revenue the Court held that , to avail of the benefit of the second proviso to S.40(a)(ia) of the Act, 1961introduced by the Finance Act, 2012 read with the first proviso to S. 201(1) , there should be a return filed under S. 139 with computation of income including such amounts received as also the payment of tax on such income. Only if all the three conditions are satisfied, would the beneficial provision be applicable to an assessee who had failed to deduct tax at source. When an assessee has failed to deduct tax by virtue of the proviso to S. 201(1) , he would be treated as not an “assessee-in-default” only when the person from whom tax was to be deducted has paid the tax. On facts the recipient has filed belated return hence conditions not satisfied . Accordingly the assessee is liable to deduct tax at source-Liable to pay tax with interest . Hindustan Coca Cola Beverage (P) Ltd. v. CIT( 2007( 293 ITR 226 ( SC) is distinguished . ( AY. 2007-08, 2008-09, 2009-10 )