Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (12) TMI 184 - AT - Income TaxShort deduction of tax at source on interest paid - demand raised under section 201 and levy of interest under section 201(1A) - Held that:- From the confirmation letter of Tata Motors Ltd., submitted before the first appellate authority, it is very much clear that the deductee has admitted that interest payment of ₹ 1,87,33,461, received from the assessee bank was offered to tax in the return of income filed for the assessment year 2008–09. In the said confirmation, Tata Motors Ltd., also furnished their assessment particulars. Thus, from the confirmation letter of the deductee, it is very much clear that the interest payment on which short deduction was alleged was declared as income by deductee in its return of income filed for the assessment year 2008–09. Thus, it pre–supposes that tax due on such income returned must also have been paid by the deductee. Therefore, the learned Commissioner (Appeals), in our view, was not justified in rejecting assessee's claim on the observation that whether tax paid on such income by the deductee was not mentioned. When the income tax assessment particulars of Tata Motors Ltd. was furnished in the confirmation letter, if the learned Commissioner (Appeals) had any doubt with regard to payment of tax by Tata Motors Ltd., he could have verified from the Departmental Authorities. We have no hesitation in holding that the assessee cannot be treated as assessee in default for the purpose of raising demand under section 201(1) of the Act in respect of interest payment to Tata Motors Ltd. As far as charging of interest under section 201(1A) is concerned, we are unable to accept assessee's contention, because the decision of the Hon'ble Gujarat High Court in Rishikesh Apartment Co- operative Society Ltd. (2001 (6) TMI 17 - GUJARAT High Court ) is prior to the decision of the Hon'ble Supreme Court in Hindustan Cocacola Beverages Pvt. Ltd. (2007 (8) TMI 12 - SUPREME COURT OF INDIA), wherein upheld the applicability of circular no.275/201/95–IT(V) dated 29th January 1997, issued by the CBDT stating that liability to charge interest under section 201(1A) of the Act till the date of payment of tax by the deductee would remain. We, therefore, while deleting the demand under section 201(1) of the Act, direct the Assessing Officer to compute interest under section 201(1A) of the Act till the date of payment of tax by the deductee. - Decided partly in favour of assessee.
|