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TMI Blog2014 (2) TMI 1164X X X X Extracts X X X X X X X X Extracts X X X X ..... are common and the grievances arised on a common set of material facts, we deem it proper to dispose of all the three appeals by way of this consolidated order. 2. The appeals are time barred by 55 days but the assessee has moved a petition seeking condonation of delay. Having perused the petition and having heard ld. Departmental Representative on the same, we deem it fit and proper to condone the delay and proceed to take up the appeals on merits. Accordingly, we admit the appeals for consideration on merits. 3. To adjudicate on these appeals, only few material facts need to be taken note of. The A.O. (TDS) has raised the demands on the assessee, a Government Undertaking, on account of assessee's not having deducted tax at source in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee in a situation in which the recipient of income has paid due taxes on income embedded in the payments from which tax withholding requirements were not fully or partly, complied with. Hon'ble jurisdictional High Court, in the case of Jagran Prakashan Ltd Vs DCIT [(2012) 21 taxmann.com 489 All] also has, inter alia, observed as follows: ...........it is clear that deductor cannot be treated an assessee in default till it is found that assessee has also failed to pay such tax directly. In the present case, the Income tax authorities had not adverted to the Explanation to Section 191 nor had applied their mind as to whether the assessee has also failed to pay such tax directly. Thus, to declare a deductor, who failed to deduct the tax at so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... precedent to invoking Section 201(1), the onus is on the Assessing Officer to demonstrate that the condition is satisfied. No doubt the assessee has to submit all such information about the recipient as he is obliged to maintain under the law, once this information is submitted is for the Assessing Officer to ascertain whether or not the taxes have been paid by the recipient of income. This approach, in our humble understanding, is in consonance with the law la id down by Hon'ble Allahabad High Court. 8. It is important to bear in mind that the lapse on account of nondeduction of tax at source is to be visited with three different consequences - penal provisions, interest provisions and recovery provisions. The penal provisions in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s about payment of taxes on income of the recipient directly from the recipients of income. I t is not the revenue's case before us that, on the facts of this case, such an exercise by the Assessing Officer is not possible. It does put an additional burden on the Assessing Officer before he can invoke Section 201(1) but that' show Hon'ble High Court has visualized the scheme of Act and that's how, therefore, it meets the en d o f justice. 9. As far as levy of interest under sect ion 201(1A) is concerned, this interest is admittedly a compensatory interest in nature and it seeks to compensate the revenue for delay in realization of taxes. Hon'ble Bombay High Court, in the case of Bennett Coleman & Co Ltd Vs ITO (157 ITR 812) has held so. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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