Held that the assessee had already deposited the tax deducted at source with interest before completion of assessment. A person is liable to pay interest under section 201(1A) for failure to deduct tax at source or delay in payment of tax deducted at source. The assessee had already deposited the tax deducted at source along with interest to the Government exchequer. In view of this, no loss was caused to the Revenue and the disallowance was not called for. (AY. 2014-15)
Srabani Constructions Pvt. Ltd. v. ACIT (2021) 87 ITR 7 (SN) (Cuttack) (Trib.)
S. 40(a)(ia) : Amounts not deductible-Deduction at source Tax deducted from payments to contractor-Tax was deposited with interest for delay prior to competition of assessment-Disallowance is not justified. [S. 37(1), 201(IA)]