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TMI Blog2012 (7) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... interest u/s 201(1A) of the Income-tax Act, 1961, on the amount of TDS. Ld. Authorized Representative submitted that the first issue is covered by judgments of I.T.A.T., Jaipur, Delhi, Jabalpur, Cuttack, Mumbai, Madras, whereas second issue is covered by judgments of Gujarat High Court, Delhi High Court. 3. Rival contentions have been heard and records perused. Facts of the case are that the assessee is a company incorporated under the Companies Act, 1956, and is engaged in the distribution of power in the state of Madhya Pradesh. The assessee is purchasing power from the generating company namely M/s. Madhya Pradesh Power Generating Company Limited and selling it to the consumers. The power from the generation point to the assessee compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income had duly paid tax on its entire income including the income received by assessee, there was no reason to deduct tax on the income paid by assessee and Assessing Officer was not justified in charging interest u/s 201(1A). The ld. Authorized Representative placed on record the order of I.T.A.T., Jaipur Bench in the case of Jaipur Vidyut Vitran Nigam Limited order dated 30th April, 2009, wherein it was alleged by ld. Authorized Representative that under similar facts, the levy of interest was held to be not justified by the Honourable Bench. 6. We have carefully gone through the order of Coordinate Bench, which appears to be on similar facts and in respect of similar payment having been made on which interest was charged for delay in d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 005-06 to 2008-09 and copy of the assessment order for assessment years 2005-06 and 2006-07, it is noted that whatever tax was deducted at source has been claimed/allowed as refund to RVPN. Therefore, no interest under Section 201(lA) for earlier years is leviable on the assessee. [Para 11] Circular No. 275/101/95IT(B), dt. 29-1-1997 clarifies that where the deductee assessee has paid the tax, demand under Section 201 is not visualised but this will not alter the liability of interest under Section 201(lA) till the date of payment of taxes by the deductee assessee. This circular supports the case of the assessee, inasmuch as this circular visualises the liabilities of interest till the payment of taxes by deductee assessee. If deductee asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the levying of interest on the assessee for delay in deduction/ payment of tax is not justified. In this regard, we found that the CBDT has issued a circular No. 275/201/95- IT(b) DATED January 219,1997, which was relied upon by the Supreme Court in the case of Hindustan Coca Cola Beverages Private Limited vs. CIT, 293 ITR 226 (S.C.) that "no demand visualized u/s 201(1) of the Income-tax Act, 1961, should be enforced after the tax deductor has satisfied the office in charge of TDS that taxed due have been paid by the deductee assessee. However, this will not alter the liability to charge interest u/s 201(1A) of the Act till the date of payment of taxes by the deductee assessee or the liability for penalty u/s 271C of the Income-tax Act." ..... X X X X Extracts X X X X X X X X Extracts X X X X
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