TMI Blog2017 (10) TMI 1209X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the interest u/s 201(1A) of the Act. Mere non-deduction of tax at source and non-remittance to Government of India account attracts the interest u/s 201(1A) of the Act and that is the reason for which the provision has been inserted to charge interest from the date of the tax deductible to the date of furnishing of return of income by the resident. Since the decisions relied upon by the Ld. A.R. are related prior to insertion of the proviso u/s 201(1A) of the Act, the decisions relied upon by the assesse are not applicable in assessee’s case. Thus we hold that the interest is chargeable from the date of such tax is deductible to the date of furnishing of return of income and we uphold the order of the Ld. CIT(A) and dismiss the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e F.Y. 2013-14 and the interest u/s 201(1A) of the Act of ₹ 1,34,566/- for the F.Y. 2012-13 and ₹ 51,039/- for the F.Y. 2013-14 respectively for the assessee s failure to deduct the tax at source and non-remittance to Govt. account. 3. The assessee went on appeal before the CIT(A) and the Ld. CIT(A) confirmed the action of the A.O. in treating the assessee as the assesse in default and held that it required to deduct tax at source on the payments made to Dolphin Imaging Services u/s 194J of the Act. Further, the CIT(A) having found that the deductee has filed the return of income and offered receipts from the assessee in the returns of income, the Ld. CIT(A) allowed relief to the assessee for the interest imposed u/s 201(1) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of the tax required to be deducted in the case of the deductee. The similar provision was inserted in section 201(1A) of the Act also. The Ld. A.R. further argued that in case the deductor is not treated as the assessee in default, the deductor is not liable to pay interest u/s 201(1A) of the Act. The Ld. A.R. relied on the order of this Tribunal in the case of ITA No.40/Vizag/2014 in the case of Manne Rajesh Kumar dated 6.9.2017 and the decision of ITAT Cochin bench in the case of Thomas Muthoot Vs. DCIT reported in (2013) 21 ITR 0133 and the decision of ITAT Lucknow in the case of DCIT Vs. Sahara India Commercial Corporation Limited reported in (2015) 67 SOT 0318 Lucknow. 5. On the other hand, the Ld. Departmental Representative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act in deductor s case. It is for deductor s failure to deduct the tax at source and remit to Government account and does not depend on the tax liability of the deductee. Therefore, the Ld. D.R. argued that the CIT(A) has rightly confirmed the interest chargeable u/s 201(1A) of the Act, which required to be upheld. 6. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The assessee required to deduct tax at source on payments made to the Dolphin Imaging Services on the amounts of ₹ 88,43,193/- for the financial year 2012-13 and ₹ 87,04,620/- for the financial year 2013-14. The assessee has not deducted the tax at source and did not remit to the govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. We have gone through the decisions relied upon by the Ld. A.R. The decision of this Tribunal in the case of Manne Rajesh Kumar (supra) is rendered following the circular No.2 of 2014 of CBDT, wherein the CBDT has issued a specific circular not to treat the assessee in default in the case of non-resident u/s 195 of the Act. In the circular, the benefit was not extended to the resident. Therefore, the decision of this Tribunal in the case of Manne Rajesh Kumar (supra) is not applicable in the assessee s case. The decision of ITAT Cochin bench was rendered in relation to the assessment years 2007-08, 2006-07 2005-06 and the decision of ITAT Cochin bench was rendered for the assessment years 2003-04 to 2006-07. The Income Tax Act has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading of the proviso to section 201(1A) of the Act makes it very clear that even though the assessee is not deemed to be assessee in default under first proviso to sub section (1), the interest under clause (i) shall be payable from the date on which such tax is deductible to the date of furnishing of return of income by such a resident. Therefore, the tax liability in the hands of the deductee has no relation or connection for charging the interest u/s 201(1A) of the Act. Mere non-deduction of tax at source and non-remittance to Government of India account attracts the interest u/s 201(1A) of the Act and that is the reason for which the provision has been inserted to charge interest from the date of the tax deductible to the date of furnis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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