Debtor not entitled to withhold payment of amount due under a decree on pretext that it has to be deducted as TDS

RELEVANT PARAGRAPH Parties have settled the dispute. A query, however, is raised by the Counsel appearing on behalf of defendants regarding deduction of TDS on the interest component of the decree. Apprehension is expressed by the learned Counsel appearing on behalf of defendants that under the provisions of section 194A of the Income Tax Act, on the interest component which is payable, tax has to be deducted at source and if it is not so done, the person who does not deduct tax at source on the interest component would be liable for prosecution and penal consequences under the provisions of t...