Tax was to be deducted at source undersection 194A where due to losses no interest was paid by assessee to its creditor but credit entry was made as if interest was paid to creditors

Sections 194A, read with section 201, of the Income tax Act, 1961 -Deduction of tax at source - Interest other than interest on securities -Assessment years 2004-05 to 2006-07 - Assessee-company borrowed money fromcreditors and was liable to pay interest - As assessee was running under loss,it did not make any payment of interest - However, for purpose of complyingwith provisions of Companies Act, credit entry was made as if interest was paidto creditors - At time of making credit entry assessee did not deduct tax atsource under section 194A - Assessing Officer thus treated assessee asassessee-in-default and levied interest under sections 201 and 201(1A) -Whether by virtue of amendment of section 201 by Finance Act, 2008, withretrospective effect from 1-6-2002, assessee was required to deduct tax atsource under section 194A - Held, yes - Whether therefore, impugned orderpassed by Assessing Officer was to be upheld - Held, yes [In favour of revenue]