COMMNR. OF INCOME TAX, BANGALORE vs M/S. CENTURY BUILDING INDUSTRIES PVT.LTD

The Supreme Court held that the Income Tax Appellate Tribunal correctly determined 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, as these transactions were not reflected in the company's books. The Court emphasized that the loans were taken by the directors in their individual capacities and the company merely acted as a conduit for repayments. Consequently, the appeals filed by the Department were dismissed, affirming the Tribunal's decision.