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TMI Blog2018 (8) TMI 2108X X X X Extracts X X X X X X X X Extracts X X X X ..... s liability of the assessee to pay interest on the default. Though the statutory provisions casts liability on the assessee, keeping in view the payment received by the exchequer, whether by the assessee(purchaser) or by the recipient(seller) leverage was given by the authorities not to burden the assessee with the strict liability of the TDS deduction when the recipient pays the due taxes vide Circular No. 275/201/95-IT dt. 29/01/1997. This doesn t mean the assessee is absolved totally of the responsibility to deduct the taxes and also interest if any. This Circular absolves the assessee in the cases where the due payments of tax or interest has been duly paid by the recipient. Hon'ble Delhi High Court in the case of DIT vs. Jacabs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case and has thereby erred in upholding the assessee in default u/s 201(IA) of the Income Tax Act, 1961. The appellant has purchased property from non-resident through his GPA who was resident of India. The payment was made to the attorney holder. The Appellant is not liable to deduct TDS when payment is made to a power of attorney holder. The issue is covered by the judgment of the Hon ble ITAT in 128 TTJ 116 (2010) in the case of Rakesh Chauhan under section DDIT (International Taxation) In view of the above, it si prayed that the order under section 201(IA) of the Income Tax Act 1961 may kindly be quashed. 3. The short issue to be dealt in this case is whether or not the assessee is liable to deduct TDS when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxes the interest cannot be charged in the hands of the assessee. 7. The provisions of 201(1) stipulates that the assessee is liable to deduct tax on the payment and section 201(1)(A) casts liability of the assessee to pay interest on the default. Though the statutory provisions casts liability on the assessee, keeping in view the payment received by the exchequer, whether by the assessee(purchaser) or by the recipient(seller) leverage was given by the authorities not to burden the assessee with the strict liability of the TDS deduction when the recipient pays the due taxes vide Circular No. 275/201/95-IT dt. 29/01/1997. This doesn t mean the assessee is absolved totally of the responsibility to deduct the taxes and also interest if any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to pay interest and not the assesses as otherwise, there will be charging of interest twice on the payment of tax in relation to the same income, Such an interpretation should normally be avoided. 8. It was held, in fact, the first two sentence of this Para go against the assessee, which says that an authority which is bound to make a deduction of tax at source as per statute, if does not deduct, or after deducting fails to pay the tax, than such a person or authority is liable to pay simple Interest on the amount of tax not deducted. This shows that, liability of the tax deductor is absolute. The assessee who should be the deductor as per statute failed to deduct taxes and is seeking to benefit itself by claiming the benefits ..... X X X X Extracts X X X X X X X X Extracts X X X X
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