TMI Blog2000 (9) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... ed interest under ss. 234B and 234C for short payment of advance tax on the aforesaid deemed income. The learned AO also levied interest under s. 201(1A) on delayed deposits of tax deducted at source. Aggrieved, the assessee preferred an appeal before the CIT(A) who, relying upon the ratio of decision rendered in the case of Sutlej Cotton Mills Ltd. vs. Asstt. CIT (1993) 199 TTR 170 (AT)(SB) upheld levy of interest under ss. 234B and 234C of the IT Act. The learned CIT(A) also upheld levy of interest under s. 201(1A) as the assessee did not file any submission against charging of interest under s. 201(1A). Still aggrieved, the assessee is in appeal before us. 4. Shri R. Santhanam, the learned counsel for the assessee, submitted that deeme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reliance was also placed on the Tribunal decision in Sutlej Cotton Mills Ltd. vs. Asstt. CIT. It was further submitted that when two different High Courts have expressed conflicting views, and when jurisdictional High Court is silent on the issue, the Tribunal is free to adopt the view which seems more reasonable to the Tribunal or to follow Tribunal's earlier decisions, if any, on the issue. Both the High Court judgments, in such circumstances, have equal persuasive value. Regarding levy of interest under s. 201(1A), Shri Tayal submitted that since fact about delayed deposit of tax deducted at source, and quantification thereof, was mentioned in the tax audit report itself, the AO was duty-bound to levy interest under s 201(1A) on such del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the statute, it is to be carried to its logical conclusion but without creating further deeming fiction so as to include other provisions of the Act which are not made specifically applicable. It is thus evident that views of these two High Courts are in direct conflict with each other. Clearly, therefore, there is no meeting ground between these two judgments and we are also unable to accept the suggestion that we can follow earlier decisions of this Tribunal, or such views, whichever seem more reasonable to us, of one of these High Courts. 7. It may be mentioned that some Benches of the Tribunal have either taken independent view on the issue in this appeal or have later on followed Hon'ble Gauhati High Court, referred to above. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n'ble Supreme Court has laid down a principle that "if two reasonable constructions of a taxing provisions are possible, that construction which favours the assessee must be adopted". This principle has been consistently followed by the various authorities as also by the Hon'ble Supreme Court itself. In another Supreme Court judgment, Petron Engg. Construction (P) Ltd. Anr. vs. CBDT Ors. (1988) 75 CTR (SC) 20 : (1989) 175 ITR 523 (SC), it has been reiterated that the above principle of law is well established and there is no doubt about that. Hon'ble Supreme Court had, however, some occasions to deviate from this general principle of interpretation of taxing statute which can be construed as exceptions to this general rule. It has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground of legal niceties and without having anything to say on the merits of leviability of interest under s. 201(1A). The tax audit report clearly mentions that there have been lapses in depositing tax deducted at source and it has even quantified the interest liability on account of these delays. The assessee has not refuted the liability to bear consequences of these delays but his only grievance is that show-cause notice was not served to him and that the TDS returns were filed before another officer. We are of the opinion that since TDS returns were admittedly filed before another officer, who was in seisin of the matter, assessee's liability under s. 201(1A) of the IT Act should have been examined and adjudicated upon by the AO before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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