TMI Blog2008 (11) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... d 23.9.2002 of CIT(A) for assessment year 2000-01. Though the assessee in this appeal has raised several grounds, basic dispute is in relation to applicability of provisions of section 201 and 201(1A) for default in deducting tax at source. 2. The assessee who is a wholly owned subsidiary of Bank of Baroda is engaged in the credit card business. Assessee was issuing credit cards in collaboratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mode whichever is earlier. Further, under the provision of sub section (2) of section 195, in case, the responsible person considers that the whole of such sum would be income chargeable in the case of receipt he may make an application to the Assessing Officer to determine by general order or special order the appropriate portion of such sum so chargeable and upon such termination tax shall be de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional. He treated the assessee in default in respect of the above two sums and also held that the assessee was liable to simple interest at the rate of 18% per annum under section 201(1A) which was calculated at ₹ 22,40,596/-. 2.2 In appeal, CIT(A), noted that both Visa Card and Master Card had filed their return of income showing nil income but the same had been taxed by the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the entire tax had been paid by the deductee as per mutual agreement procedure and therefore it would not be appropriate to hold the assessee in default for the same amount u/s. 201(1). The Learned DR on the other hand argued that even if the tax had been paid by the deductee the assessee is liable for interest under section 201(1A) in case the tax had not been paid in time as required under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in nature. Levy of which is therefore mandatory as held by Hon'ble High Court of Delhi in case of Prem Nath Motors (Pvt.) Ltd. (253 ITR 705). As full facts are not available on record we set aside the order of CIT(A) and restore the matter to the file of Assessing Officer for passing a fresh order in relation to section 201(1A) after necessary examination in the light of observations made abo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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