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2017 (8) TMI 242 - HC - Income TaxScope of Sections 201(1) & (IA) - sufficient cause for determining assessee in default - Tribunal held that Sections 201(1) & (IA) were penal in nature and that sufficient cause was a relevant consideration while holding the assessee as an assessee in default - Held that:- Revenue has drawn the attention of this Court to the decision of the Supreme Court in Commissioner of Income Tax v. M/s Eli Lilly & Company (India)(2009 (3) TMI 33 - SUPREME COURT) in which it was held that interest under Section 201 (1A) is a compensatory measure for withholding the tax which ought to have gone to the exchequer. It has further been observed that the object underlying Section 201(1) of the Act is to recover the tax. In the case of short deduction, the object is to recover the shortfall. The impugned order of the ITAT which holds that Section 201 (1) and 201 (1A) of the Act are 'penal' in nature is plainly contrary to the above decision of the Supreme Court. Accordingly, Question (1) above is answered in negative i.e. in favour of Revenue and against the Assessee.
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