TMI Blog2005 (1) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... on also warranted levy of penalty or the circumstances did not call for levy of penalty is a question which is sought to be agitated by the petitioner before the appellate authority. There is neither any need nor the occasion to examine this aspect by the court in this writ petition - No occasion to interfere particularly for quashing recovery notice under section 226(3) when the subject matter is not before this court nor can be agitated before this court in these writ petitions – petition dismissed - - - - - Dated:- 28-1-2005 - Judge(s) : D. V. SHYLENDRA KUMAR. JUDGMENT D.V. Shylendra Kumar J.- These writ petitions by the insurance company is for quashing the notice issued under section 226(3) of the Income-tax Act, 1961, to the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ben Dharmeshbhai Shah [2004] 269 ITR 63 and in favour of the petitioner and when the very question as to whether the petitioner was liable to deduct any tax at source and remit it to the Income-tax Department was doubtful, further levy of penalty in respect of non-compliance is necessarily not warranted and when the levy of penalty has been questioned and is the subject matter of appeal before the Tribunal, then it is a fit case for granting interim order of stay by the Tribunal during the pendency of appeal before it, is the principle of law laid down in a catena of decisions both by the High Court and the Supreme Court and places reliance on the following cases: (1) Birla Cement Works v. CBDT [2001] 248 ITR 216 (SC); and (2) V. M. Sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r: "194A. Interest other than 'Interest on securities'.- (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of interest other than income by way of interest on securities, shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force: Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relieved in such a situation. One of the provisions is, clause (ix) where a relaxation is made in favour of the person like the petitioner, viz., the insurance company, who may have occasion to make payment of interest to the claimants and if such payment of interest for a period of one year does not exceed a sum of Rs. 50,000 the insurance company is not under an obligation to deduct tax at source. The subject-matter of non-compliance with the provision was of the period prior to June 1, 2003. Admittedly, during the period the petitioner was under an obligation to deduct tax at source on payment of interest in terms of sub-section (1) of section 194A of the Act. The submission on the same on behalf of the petitioner that the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X
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