Section 33BA: TDS not deductible on Interest on Site Restoration Fund

DCIT (TDS) Vs. State Bank of India (ITAT Delhi)

ITAT has examined the question of whether the Site Restoration Fund Account (SRF A/c) is a time deposit and held that it is not. Therefore, in view of the provisions of section 194A (3) (vii) it has held that the provisions of section 194A(1) have no application to the assessee’s case. Thus, once the ITAT has given a finding of fact that the SRF a/c is not a time deposit, the AO’s action in revisiting the issue on the basis of earlier submission made by the assessee in a verification relating to a previous assessment year (and subsequently retracted) cannot be upheld, in view of the fact that the Hon’ble IT AT has found that the assessee’s case does not fall u/s 194A(1) and that there was no liability or the part of the assessee to deduct any tax on site restoration fund of ONGC or on interest paid on site restoration deposit of ONGC, the assessee cannot be said to be an assessee in default within the meaning of section 201(1).