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2022 (11) TMI 640 - HC - Income TaxLevy of interest invoking Section 220(2) - Interest on interest by the respondents u/s 220(2) - main contention of the appellants is that consequent upon the assessment, the appellants have paid the tax including penalty and interest as demanded by the Department and therefore, levy of interest invoking Section 220(2) was not only harsh but also amounts to interest on interest, as interest computed under Sections 234(A), 234(B) and 234(C) - HELD THAT:- The appellants are under an erroneous belief that they have been wrongly foisted with interest on interest by the respondents under Section 220(2) of the Income Tax Act, 1961. A reading of the provision of the Income Tax Act, 1961, makes it very clear that non submission of returns and non-payment of tax in time, attracts penalty and interest. To be eligible for the benefit of waiver under Section 220(2A) of the Income Tax Act, 1961, the appellants have to satisfy the requirement of the said provision. The authority has rightly come to the conclusion that the appellants have not satisfied the requirement of Section 220(2A) - Therefore, the appellants are liable to pay the amount demanded by the Department. The appellants cannot blame the income tax department for the delay in refund of the amounts to the company of which the appellants are directors. The appellants and the company are two separate and distinct assessees. Further, the amount was demanded based on search conducted. None of the limbs of Section 220(2A) of the Income Tax Act, 1961 has been satisfied by the appellants to claim waiver. There is no error apparent on the face of record in the order passed by the learned single Judge while rejecting the request of the appellants. Appeal dismissed.
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