INCOME TAX

Section 201(1) Consequence of failure to deduct or pay

Where taxes have been paid by deductee-assessee

The Board is of the view that no demand visulasied under section 201(1) of the Income-tax Act should be enforced after the tax deductor has satisfied the officer in charge of TDS that taxes have been paid by the deductee-assessee.

Instruction : F. No. 275/201/95-IT(B) on 29-1-1997.