Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 154 - AT - Income TaxLevy of interest under sec. 201(1A) - non deduction of tds u/s 192 - period of computation of interest - Held that:- A simple reading of sec. 192(1) makes it clear that it specified the manner and rates at which tax shall be deducted. Sub sec. (3) of sec. 192 provides for adjustment of excess or deficiency within the financial year, not only in the cases of short deduction and also for failure to deduct during the financial year. The object and purpose of Sub section (3) is to permit the deductor to adjust the short or excess deduction in the financial year. Therefore, sub sec. (3) abundantly makes it clear that if failure to deduct tax, the same can be deducted by way of adjustment during the financial year. Similarly, section 201(1A) provides for computation of income from the date it was deductible to the date of such deduction or payment as the case may be. A conjoint reading of sec. 192(1) and 192(3) along with section 201(1A) makes it clear that liability to interest arises only, when such tax was deductible as per sub sec. (3) of section 192 and not as per sub sec. (1) of sec. 192 of the Act. Therefore, we are of the opinion that, interest u/s 201(1A) is payable from the 1st day of April of subsequent year. - Decided against the revenue.
|