Suppose A Pvt Ltd has deducted TDS on the Invoice issued by B Pvt Ltd during financial year 2009-10. After that there was some dispute arises between them and A Pvt Ltd refuses to made payment. After that B Pvt Ltd filed a legal suit against A Pvt Ltd and gives argument that since A Pvt Ltd had deducted and deposited TDS means it has accepted the liability and it should pay balance amount to B Pvt Ltd. My question is Can deduction of TDS on invoice be assumed as acceptance of liability?
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