Commnr. Of Income Tax, Bangalore & Anr vs M/S. Century Building Industries Pvt. ...

The Supreme Court held that the Income Tax Appellate Tribunal erred in ruling that the assessee-company was not obligated to deduct tax at source under Section 194A of the Income-tax Act, 1961, for interest payments made on loans availed by its directors. The Court established that the company, despite being a conduit for the loans, was responsible for TDS compliance as the interest payments were made from its accounts. The Court reversed the Tribunal's decision, affirming the applicability of Sections 194A and 201 of the Act, and held the assessee-company liable for default in TDS deduction.