No TDS liability u/s 194A on interest paid which is compensatory in nature

Brief of the Case ITAT Chennai held In the case of The ACIT vs. M/s. Trimex Industries (P) Ltd that payment of interest which has direct link or immediate nexus with the trading liability being connected with the purchase payment, it will not fall under the category of interest as defined in Sec. 2(28A) of the Act. Payment made by the assessee in the present appeal cannot be termed as interest & rightly observed by CIT (A) that this payment is compensatory in nature. There will be no TDS liability for the same. Facts of the Case The assessee is an exporter of minerals exporting to its asso...