TMI Blog2016 (6) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... f 2016 TO TAX APPEAL NO. 482 of 2016 - - - Dated:- 21-6-2016 - MR. AKIL KURESHI AND MR. A.J. SHASTRI, JJ. FOR THE APPELLANT : MRS MAUNA M BHATT, ADVOCATE COMMON ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. This group of appeals involve the same assessee and identical question is presented by the Revenue for our consideration, which reads as under: Whether the Appellate Tribunal has substantially erred in law and on facts in cancelling the interest charged u/s 201(1A)? 2. Facts may be noted from Tax Appeal No.479 of 2016. 3. The appeal concerns assessment year 2007-08. The respondent assessee is engaged in the business of shipping support services and had, during the relevant period, taken port s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax from the amount payable to the contractor, the contractor had already paid the tax. It was held that if the person on whose behalf tax was to be deducted at source had paid such tax and that too at the time when it had become due, it would not be proper on the part of the Revenue to levy interest under section 201(1A) of the Act. The Court held and observed as under: 11. If one looks at the facts of the present case, it is not in dispute that Ravi Builder, on whose behalf the tax was to be deducted and paid under Section 194C of the Act had paid more amount of tax by way of advance tax than what was payable and had also paid tax on selfassessment. Thus, it is not at all in dispute that for the relevant two years the amount of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by the contractor had already been paid by it and that too in excess of the amount which was payable by way of advance tax, in our opinion, the Tribunal was absolutely right in holding that the tax paid by the contractor in its own case, by way of advance tax and selfassessment tax, should be deducted from the gross tax that the assessee should have deducted under Section 194C of the Act while computing interest chargeable under Section 201(1A) of the Act. If the Revenue is permitted to levy interest under the provisions of 201(1A) of the Act, even in a case where the person liable to pay the tax has paid the tax on the date due for the payment of the tax, the Revenue would derive undue benefit or advantage by getting interest on the am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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