TMI Blog2001 (2) TMI 981X X X X Extracts X X X X X X X X Extracts X X X X ..... ce because the Income-tax Act, 1961, enjoins upon the tax deductor to deduct tax correctly. 2. That, on the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals)-VI, Calcutta, was not justified in allowing relief on account of interest under section 201(1A) of the Incometax Act, 1961, as the relevant provision clearly states that interest has to be levied for short deduction of tax deducted at source." Before we take up those appeals on merits, it is important to state that the apex court in the case of Oil and Natural Gas Commission v. Collector of Central Excise [1995] Suppl. 4 SCC 541, has held that the litigation between one Government Department and a public sector enterprise and public enterp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal against the impugned orders of the learned Commissioner of Income-tax (Appeals). It may be observed from the above that it is mandatory on the part of the Department that a clearance should be obtained from the high powered committee on dispute settlement before filing the appeal(s) and/or to apply within a period of one month from such filing of the appeal(s). In view of the mandatory requirement of the clearance from the high powered committee on dispute settlement these appeals are not maintainable. Be that as it may, we may state that there is no merit in the appeals filed by the Department to interfere with the order of the learned Commissioner of Income-tax (Appeals). The assessee in the relevant assessment year did not ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer and I find that it goes without saying that the appellant did every thing according to the law and that the duty cast on the appellant under section 192 of the Act was fully performed by collecting the tax from the salaries of the employees on the basis of the existing provisions of the Act as evidenced in the annual return submitted under section 206 for the financial years 1987-88 and 1988-89. There was thus no short collection of tax on the basis of the law and the provision of the Act at that time nor could the appellant be held to be a defaulter in that regard. In view of the foregoing facts, I hold that the Assessing Officer was not correct and justified in initiating proceedings under section 201 of the Act since it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, CCA has become a part of the salary and as such the same is to be taken into account for the purpose of calculating the tax but the assessee-bank could not deduct the tax from its employees at source on the payment of the said CCA as it was not a part of the salary at the time of making the payment to its employees. Therefore, the assessee-bank could not be penalised and be made responsible to pay the tax on behalf of its employees ; later on, the assessee-bank performed its duty as it was put under section 192 of the Act at the time of making the payment as per the then provisions of law by collecting the tax from the salaries of its employees and thus there was no short deduction of tax. Therefore, we agree with the direction given by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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