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2013 (7) TMI 168 - HC - Income TaxAssessment u/s 115JA - MAT - Levy of interest u/s 234B and 234C on retrospective levy of tax - Held that:- The liability to pay interest would only arise on default and it is in the nature of a quasi punishment. Such liability although created retrospectively could not entail punishment by payment of interest with retrospective effect. payment of interest for delayed payment of tax is compensatory in nature. It is a suffered liability. Though such a liability could be created retrospectively. When such a liability is retrospectively created. The assessee cannot be accused of committing default and he cannot be charged wit interest for such default. As the assessee was under no obligation on the date of the alleged default to pay tax at that particular rate, he cannot be accused of having committed default and made to pay interest as compensating the revenue for having not paid the money - Following decision of Star India Private Limited Vs. CCE [2005 (3) TMI 10 - Supreme Court] - Decided in favour of the assessee.
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