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2022 (9) TMI 823 - AT - Income TaxLevy of interest for delayed payment of TDS - Interest liability u/s 201(1A) for delayed payment of tax (TDS) to the credit of exchequer and consequential levy of interest thereon u/s 220(2) - whether default or failure to pay the TDS within prescribed time limit is sufficient to hold the appellant as an ‘assessee in default’ within the ambit of section 201(1) of the Act?’ - HELD THAT:- For reason of delay in paying the amount of deducted tax (TDS) to the ex-chequer, the CPC-TDS by an order u/s 154 of the Act, held the appellant as the ‘assessee in default’ in terms of provision of section 201(1) r.w.s. to 191 and consequently computed the compensatory interest u/s 201(1A) which remained uncontroverted by the appellant during the proceedings before CPC-TDS as well before both the appellate proceedings. Thus, in the present case, admittedly there was exfacie delay in depositing the deducted tax (TDS) within the stipulated due dates, for the reasons interest u/s 201(1A) found charged and such levy being automatic and without escapement finds force very same decision in “Hindustan Coca-Cola Beverages Pvt. Ltd [2007 (8) TMI 12 - SUPREME COURT] which was relied by the Ld. AR and which reads as under this will not alter the liability to charge interest u/s 201(1A) of the Act till the date of payment of taxes by the deductee-assessee. Since the said default de jure is outside the exclusion carved out by the proviso to section 201(1) of the Act and the levy of interest u/s 201(1A) for the aforestated default being automatic & liability of interest u/s 220(2) being consequential one, finds no shelter, for the reasons the orders of tax authorities below being flawless, needs to be sustained. We find no merit in the grounds raised by the appellant consequently there remained no iota of doubt in confirming the orders appealed against in pleno, ergo ordered accordingly.
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