TMI Blog2017 (8) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... drawn the attention of this Court to the decision of the Supreme Court in Commissioner of Income Tax v. M/s Eli Lilly & Company (India)(2009 (3) TMI 33 - SUPREME COURT) in which it was held that interest under Section 201 (1A) is a compensatory measure for withholding the tax which ought to have gone to the exchequer. It has further been observed that the object underlying Section 201(1) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Whether the Tribunal was right in holding that Sections 201(1) (IA) of the Income Tax Act, 1961 were penal in nature and that sufficient cause was a relevant consideration while holding the assessee as an assessee in default? 2. In case question No.1 is answered in the affirmative, whether the retrospective amendment by the Finance Act, 2001 to Section 201 of the Income Tax Act constit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in nature is plainly contrary to the above decision of the Supreme Court. Accordingly, Question (1) above is answered in negative i.e. in favour of Revenue and against the Assessee. 4. Since the Question (1) is answered in the negative, Question (2) does not arise for consideration. 5. These appeals are, accordingly, allowed. The impugned order of the ITAT is set aside. - - TaxTMI - TMIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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