ITAT says Form 26A Can Cure TDS Default Where Payee Paid Tax

RUDSICO had not deducted TDS on interest paid to HUDCO and was treated as an assessee in default under Section 201(1)/201(1A). Since the assessee subsequently obtained Form 26A for the relevant payments, the ITAT restored the matters to the AO to verify whether HUDCO had included the interest income in its returns and paid the tax. The Tribunal also directed the AO to consider the assessee’s willingness to pay the applicable interest under Section 201(1A).