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13. Referring to all the above, the appeals of the assessees were dismissed by the Commissioner (Appeals) by observing in paragraph 9. 10 as under :

"9.10 From the facts on record. It can be seen that it is only the Income Tax Department which is the sufferer. The Syndicate Bank and the National Housing bank are secured because they have the custody of the shares. As regards the appellant, it has the money borrowed by it at its command and disposal. The FFSL has also got its money back on the sale/pledge of the shares of the appellant to the Syndicate Bank and the National Housing Bank. The only party at loss is the Income Tax Department, which has allowed the interest claim of the appellant allegedly payable to the notified party without realising the tax either from the notified party or from the appellant. It will be grave injustice to the department if the appellant does not pay the TDS due to the government as per the provisions of section 194A of the Income Tax Act by misinterpreting the provisions of the Special Court and the various decisions of the courts. Thus, in view of the above discussion it is held that the appellant has violated the provisions of law contained in section 194A of the Act and is accordingly liable to make the payment as per the order of the Income Tax Officer (TDS), Valsad passed under section 201(1) read with section 221(1) of the Income Tax Act."