Dismissing the SLP of the Revenue the Court held that the Tribunal and the High Court had concurrently found that on non-convertible debentures and fixed deposits of value less than Rs. 5,000, there shall not be any tax deductible at source hence levy of interest is not valid. The Court, kept open the issue whether the levy of the interest was time-barred considering section 201(1A) of the Act. (AY.2007-08, 2012-13, 2013-14)
CIT(TDS) v. Jai Prakash Associates Ltd. (2022) 449 ITR 183 / 290 Taxman 124 / 330 CTR 627/ 222 DTR 199(SC) Editorial : Order of High Court is affirmed, CIT(TDS) v. Jai Prakash Associates Ltd (ITA No. 114 of 2015 dt. 22-8-2017)(All)((HC)
S. 201 : Deduction at source-Failure to deduct or pay-Interest-Non-convertible debentures and fixed deposit-Value less than Rs. 5,000-Not liable to deduct tax at source-Not liable to pay interest. [S. 201(1), 201(IA), Art. 136]