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2016 (2) TMI 1239 - AT - Income TaxLevy of interest u/s 201(1A) - calculation of amount - whether the term ‘month’ could be given ordinary sense, i.e., “a period of 30 days” or whether it could be treated as “British Calendar Month” as per General Clauses Act? - CIT(A) directed the Assessing Officer to work out interest by adopting period of 30 days as one month - HELD THAT:- This issue is squarely covered in favour of the assessee by the case of CIT vs. Arvind Mills Ltd, [2011 (9) TMI 244 - GUJARAT HIGH COURT] as held that for the purposes of Section 244A, term ‘month’ must be given ordinary sense of term, i.e., 30 days of period and not British calendar month as defined under section 3(35) of General Clauses Act. Similar view has been taken in the case of Oil & Natural Gas Commission vs. ACIT (TDS), Surat, [2015 (10) TMI 1006 - ITAT AHMEDABAD] wherein it was held that “levy of interest u/s 201(1A) is compensatory in nature and thus gap of time between point of time when tax ought to have been deducted at sources vis-à-vis point of time when tax was actually deducted are to be seen and it is in this context that connotation of expression ‘month’ is to be examined.” In view of aforesaid decisions, we do not find any infirmity in the order of the CIT(A) which is hereby upheld.
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