TMI Blog2007 (8) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... f the donation amount under section 80GGA of the Income-tax Act, 1961. The assessee has allowed the deductions as per the donation receipts and deducted the tax thereafter. Later, it was found that the said receipts were not genuine and income was computed less by virtue of giving the so called deduction. For filing the wrong TDS certificates, the Assessing Officer levied the interest under section 201(1A) and also raised the demand under section 201 for the shortfall of the tax. The learned Commissioner of Income-tax (Appeals) has confirmed the order. Not being satisfied, the assessee is in appeal before us. Briefly, the learned authorised representative has relied on Circular No. 9/2003 dated November 18, 2003 ([2003] 264 ITR (St.) 63 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is not known as to how the learned authorised representative contends based on this provision that the Assessing Officer (TDS) has no authority to pass an order under section 201. Circular No. 9/2003 dated November 18, 2003 ([2003] 264 ITR (St.) 63) explains the method of calculation of TDS under section 192 the circular is very exhaustive and it explains how the salary is to be computed, which additional incomes can be included, which losses can be considered by the drawing and disbursing officer, etc. If there was any doubt, the drawing and disbursing officer should have got a clarification from the Department which is freely available. Various deductions, which could be considered by the drawing and disbursing officer, have been d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the employees have furnished their returns and their assessments have been completed any further demand now would create hardship in issuing revised Form 16 and for claiming credit for such amounts by the employees in their assessments as the time limit for filing the revised return is over or the assessments have been completed. This issue has been considered in various judgments of the High Courts and the orders of the Income-tax Appellate Tribunals. The courts have by and large held that if the assessments of the employees have been completed and assessment proceedings have become final and the taxes have been paid by the employees including the short deductions, the employer cannot be treated as an assessee in default. This ratio has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... veral orders of the Income-tax Appellate Tribunal. In the case of Babcock Power [2002] 77 TTJ 357, the Income-tax Appellate Tribunal, Delhi Bench has held that irrespective of the fact that tax has been paid by the concerned employees, interest is leviable from the date of deductibility of tax till the date of actual payment of tax by the employees. Similar view has been expressed by the Income-tax Appellate Tribunal, Mumbai Bench in the case of Manav Greys Exim Pvt. Ltd. [2002] 75 TTJ 115. Moreover, we may not agree with the submission made by the learned authorised representative that the drawing and disbursing officer has acted in good faith for the reason when the so called receipts have come not only in the case of the one employee b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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