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2009 (10) TMI 423 - HC - Income TaxAdvance Tax- The liability to pay interest under section 201(1A) of the Act, is on the person who fails to deduct advance tax. Section 234A, 234B, 234C creates liability on the assessee to pay interest for the default committed by him in the circumstances mentioned in the sections. Interest charged under section 234B and 234C is also compensatory. Once the deductor has satisfied the officer in charge of TDS, that taxes due have been paid by the deductor assessee, then the assessee has to pay only interest for late payment under section 201(1A). Held that- the deductor had already discharge tax liability with interest payable under section 201(1A) of the Act. As such no further interest could be claimed by the Revenue from the deductee employee either under section 234A or section 234B or section 234C.
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