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2013 (12) TMI 1109 - ITAT BANGALORELevy of interest u/s 201(1A) – Held that:- Following Solar Automobiles India (P) Ltd v. Deputy Commissioner of Income-tax [2011 (9) TMI 637 - KARNATAKA HIGH COURT] - The interest is payable for the period it is not paid after deduction - The principal liability of paying tax is that of the creditor and a statutory duty is cast on the debtor to deduct tax on the income of interest payable and remit the same to the company irrespective of liability of the principal debtor - The AO has to find out whether the creditors (hospitals) have filed their returns and paid the taxes. If they have filed the returns and paid the taxes, the liability of the asessee ceases from the day they have paid the taxes - This exercise has not been done by the AO - He had adopted the due date of filing of return of income for the purpose of calculation of interest u/s 201(1A) – The issue was restored for fresh decision.
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