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2011 (4) TMI 886 - HC - Income TaxInterest u/s 234B - advance tax was not paid - Held that:- Assessee was not liable to pay advance tax under section 208 inasmuch as the tax at source was required to be deducted by the person responsible for paying any income chargeable under the head "Salaries" at the time of payment u/s 192. The assessee only became liable to pay the tax directly under section 191 since it was not deducted at source. The stage for making payment of tax could only arise at the stage of self-assessment which is to be made in a later assessment year as is clear from section 190, whereas advance tax is liable to be paid in a financial year only and not thereafter. Thus consequently of the view that if the employer fails to deduct the tax at source while paying any income charge-able under the head "Salaries", would be responsible for payment of interest under section 201(1A). The assessee would not be liable to pay interest under section 234B since he was not liable to pay advance tax under section 208. Since the question of charging of interest under section 234B was remitted to the AO by the appellate authority, the appeals dismissed with the direction to the AO to pass consequential orders on the issue pending before it on the basis of the decision given by this Bench - in favour of assessee as directed.
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