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2017 (4) TMI 723 - AT - Income TaxInterest chargeable under section 201 (1A) - AO has charged interest up to 31st of March 2010 for the reason that from the copies of the income tax acknowledgement filed by the deductee the exact date of payment of taxes by the deductee hospitals cannot be ascertained - Held that:- Interest under section 201 (1A) can be charged from deductor for failure to deduct tax from the date of default till the date of actual tax paid by the deductee only. We do not approve the order of the Ld. assessing officer of charging interest up to 31st of March 2010, as the coordinate bench has held that interest is required to be charged from the date of default till the date of actual tax paid by the hospitals. Even the circular No. 8 /2009 dated 24/11/2009 also said that the liability to charge interest under section 201 (1A) of the income tax act shall rest up to payment of taxes by the deductee on the assessee. In view of this we restore the issue of charging interest under section 201 (1A) to the file of the Ld. assessing officer to work out the interest from the date of default till the date of tax paid by the hospitals in each such case of default. The assessee is also directed to cooperate by furnishing the requisite details of the date of default and the date of payment of taxes by the hospitals for working out the interest chargeable under section 201 (1A) of the act.
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