Interest on TDS deduction default not sustainable, where tax liability of deductor is NIL

Brief of the Case Madras High Court held In the case of M/s. Anusha Investments Ltd. vs. ITO that in the present transaction, admittedly there is no tax liability on the purchase of shares. As a result, the question of deducting tax at source and the assessee violating the provisions of Section 195 does not arise and therefore, the assessee cannot be treated as an assessee in default and interest on default cannot be imposed. The Supreme Court in the case of GE India Technology Centre P. Ltd. vs. Commissioner of Income Tax and another, 2010 (327) I.T.R. 456 (S.C.) has clearly held that the pro...