ITAT Delhi on Default under Section 201 & its Impact on Disallowance u/s 40(a)(ia)

JKG Construction Pvt. Ltd. Vs ITO (ITAT Delhi)  Legal Framework Section 201(1) Any person who fails to deduct or, after deduction, fails to deposit TDS, is deemed to be an assessee in default. Proviso: Where the deductee has filed return of income, considered such sum for computing income, and paid tax due, the deductor shall not be treated as an assessee in default (subject to filing of Form 26A). Section 201(1A) Provides for interest liability: 1% per month (from the date tax was deductible to the date of actual deduction). 1.5% per month (from the date of deduction to the date of deposi...