Interest U/s. 234B cannot be levied on payee for failure of payer to deduct TDS

Advocate Akhilesh Kumar Sah DCIT Vs Reuters Transaction Services Ltd. (ITAT Mumbai) Reuters case: When a duty is cast on the payer to deduct tax at source, on failure of the payer to do so, no interest can be imposed on the payee under Section 234B of the Act Section 234B of the Income Tax Act, 1961 (hereinafter “the Act”) deals with the interest for defaults in payment of advance tax. Recently, in DCIT vs. Reuters Transaction Services Ltd. & vice-versa [ITA No. 1393/Mum/2016 and ITA No. 2219/Mum/2016 (AY: 2012-13), decided on 3.8.2018], cross appeals were filed by Revenue as ...