Since the assessee is not making the payments but is the receipt, they will not be any obligation to withhold any taxes under the Act. Hence, the order passed under section 201 of the Act against the assessee will be quashed. (AY. 2009-10 to 2012-13)
ITO v. Thyrocare Technologies Ltd. (2022) 216 TTJ 513/ 213 DTR 233 (Mum.)(Trib.)
S. 201 : Deduction at source-Failure to deduct or pay-Pathological testing services-Commission or discount to sample collection centres-No obligation to deduct tax at source-Cannot be treated as assessee in default. [S. 194H]