Section 234B interest cannot be imposed on Payee in case of Failure of Payer to Deduct TDS

HSBC Bank (Mauritius) Ltd. Vs DCIT (International Taxation) (ITAT Mumbai)

The issue under consideration is whether penalty interest u/s 234B can be imposed on the payee in case of failure of payer to deduct the tax at source?

ITAT states that under this issue the assessee has challenged the levy of interest u/s 234B of the Act. The payer is under obligation to deduct the tax at source and on account of failure of payer to deduct the tax at source, the penalty interest u/s

Please become a Premium member. If you are already a Premium member, login here to access the full content.