TMI Blog2009 (12) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... under sections 201 and 201(1A) of the Income-tax Act, 1961 ("the Act"). An inspection was carried out at the business premises of the assessee in respect of tax deducted at source (TDS) by the assessee. During the course of inspection, the director of the assessee-company disclosed that the taxes were deducted at source under different heads but could not be deposited in the Government account. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Income-tax (Appeals) it was contended that due to paucity of funds and huge losses incurred the assessee could not pay the tax deducted at source and hence the assessee may not be treated as assessee in default and the interest liability be also withdrawn. The learned Commissioner of Income-tax (Appeals) held that the liability for depositing tax deducted at source has been admitted. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department on September 4, 2008. This request was already pending and hence the assessee is not to be treated as assessee in default under section 201 and consequential levy of penalty under section 201(1A) of the Act. The learned Departmental representative Shri Manish Gupta on the other hand, submitted that the tax was deducted during the financial years 2004-05 to 2008-09. The refund was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucted. The fact of having deducted tax at source has been admitted only after the survey was conducted at the premises of the asses- see at default. Section 201(1) provides that where any person who is required to deduct any sum in accordance with the provisions of this Act, does not deduct, or does not pay, or after so deducting fails to pay, the whole or any part of the tax, then such person sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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