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2014 (9) TMI 1066 - ITAT CHANDIGARHInterest demand u/s 201(1A) - Held that:- Interest is of compensatory nature and if recipient of the income has no tax liability then there cannot be any liability on account of interest u/s 201 (1A). If the recipient was not having any tax liability then interest cannot be charged u/s 201 (1A). However, since this information was not available with the Assessing Officer, we set aside the order of the CIT(A) and remit the matter back to the file of Assessing Officer to verify whether the recipient has any chargeable income or not and then decide the issue in the light of our observations made on the basis of the decision of Allahabad Bank V ITO, (2014 (6) TMI 672 - ITAT AGRA).
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