If recipient has paid tax, no demand under section 201(1) should be enforced

Canara Bank Vs ACIT (ITAT Mumbai) The recent appeal filed by Canara Bank against the Assistant Commissioner of Income Tax (ACIT) before the Income Tax Appellate Tribunal (ITAT) Mumbai sheds light on the complexities surrounding the rectification of Tax Deducted at Source (TDS) demands. The appeal, stemming from an order dated 21-08-2023 issued by the National Faceless Appeal Centre (NFAC), Delhi, pertains to the assessment year 2020-21. The crux of the matter revolves around the challenge to a demand of Rs. 1,64,95,826/- under section 200A for short deduction of TDS on interest payments made t...