TMI Blog2012 (6) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... simple interest at the rate of one per cent per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid - no substantial question of law is involved - against assessee. - IT Appeal NO. 2 OF 2012 - - - Dated:- 22-2-2012 - SHANTANU KEMKAR AND S.K. SETH, JJ. Ms. M. Raveendaran for the Appellant. ORDER Shantanu Kemkar, J . This order shall govern disposal of ITA No.2 of 2012 and ITA No.3 of 2012. For the sake of convenience, facts are taken from ITA No.2 of 2012. 2. This appeal under section 260-A of the Income Tax Act, 1961 (for short, the Act) is directed against the order dated 30.03.2011 passed by Income Tax Appellate Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eals-1) Indore. The Commissioner (Appeals) vide order dated 30.01.2009 partly allowed the appeal and held that the appellant/assessee is no longer liable to pay tax as it has been able to place evidence on record that the Contractors from whom the appellant had to collect tax while receiving the licence fee have paid their due taxes on their returned income. Accordingly, the demand raised for payment of tax was deleted. However, the Commissioner (Appeals) held that the appellant is liable to pay interest in view of the provisions contained in section 206C(7) of the Act. 5. The said order of the Commissioner (Appeals) by which the order of Assessing Officer regarding interest part has been affirmed, was challenged by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid before furnishing the quarterly statement for each quarter in accordance with the provisions of sub-section (3)]. (Emphasis supplied) 8. A plain reading of the aforesaid section makes it clear that if a person responsible for collecting tax does not collect the tax or even after collecting the same fails to pay it shall be liable to pay simple interest at the rate of one per cent per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid. Having regard to this clear provision in our considered view interest is required to be paid on the tax which was not collected by the appellant and not on the tax liability of the deductees (Contractors). ..... X X X X Extracts X X X X X X X X Extracts X X X X
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