ITO(TDS)-2(2)(1), MUMBAI vs. SASHWAT ENERGY PRIVATE LIMITED, MUMBAI

ITA 4279/MUM/2025Status: DisposedITAT Mumbai13 January 2026AY 2021-221 pages
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What did the Tribunal hold?

The Tribunal held that if the deductee has paid the tax on the income, the deductor cannot be treated as an assessee in default under Section 201(1). However, the liability for interest under Section 201(1A) needs to be re-examined.

What were the facts?

The assessee company deducted TDS on interest paid to M/s. Shapoorji Pallonji and Co Pvt Ltd. but failed to deposit it with the government. The assessee argued that it had no funds to pay the TDS and the deductee had already paid taxes on the interest income.

What were the issues?

Whether the assessee is liable as an assessee in default for non-deposit of TDS when the deductee has paid the tax, and the consequential interest liability.

Which sections of the Income-tax Act were involved?

Section 201,Section 201(1A),Section 194A,Section 197,Section 40(a)(ia),Section 234E

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Before: SHRI SANDEEP GOSAIN & SHRI PRABHASH SHANKAR

For Appellant: Ms Kinjal Bhuta,AR
For Respondent: Shri Surendra Mohan, (Sr. DR)
Hearing: 10.12.2025Pronounced: 13.01.2026

PER PRABHASH SHANKAR [A.M.] :- The above captioned appeal has beenpref

The order continues below.

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