No TDS on Excess Interest Spread as Originator Not an Investor Under Section 194LBC

Hebros AHL IFMR Capital 2014 Vs ITO (ITAT Mumbai)

The appeal before the Income Tax Appellate Tribunal, Mumbai Bench, arose from an order of the Commissioner of Income-tax (Appeals) dated 29.08.2025, which had upheld a demand under Sections 201 and 201(1A) of the Income-tax Act, 1961 for Assessment Year 2017–18. The assessee, a securitisation trust under trusteeship, had paid ₹61,55,769/- to originators as Excess Interest Spread (EIS) without deducting tax at source. The Assessing Officer treated the non-deduction as a violation of Section 194LBC and held the assessee to be an â

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