TDS ON ROYALTY PAYMENTS

Dear Sir,

I don't think the ground of ignorance will be considered.

But Yes where payee has deposited the Tax in due course (In form of advance tax) then Interest u/s 201 cannot be levid on the assesee

Where payee has paid tax due as advance tax interest is not leviable on payer - Where the assessee-society failed to deduct tax at source on an interest payment made to a building contractor, but the said contractor had already paid tax on the related income by way of advance tax and his assessment had also become final, no interest could be levied under section 201(1A) on the assessee. The liability of the assessee to deduct tax at source and pay the tax to the Revenue is not independent of the liability of the contractor to pay the tax - CIT v. Rishikesh Apartments Co-op. Housing Society Ltd. [2002](Guj.)

You will get answer to most of queries in this link -

https://www.itatonline.org/articles_new/index.php/opinion-%E2%80%93-failure-to-deduct-tds-%E2%80%93whether-amounts-not-deductible/