TMI Blog1996 (2) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Act, 1961, the following question has been referred to this court for opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in sustaining the Appellate Assistant Commissioner's order cancelling the order under section 201(1A) of the Income-tax Act, 1961, charging interest under that section for the default enumerated in that section ? " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee preferred an appeal before the Appellate Assistant Commissioner of Income-tax. The Appellate Assistant Commissioner allowed the appeal by observing as follows : "After carefully considering the matter, I find that the appellant is a Government undertaking. Tax deducted by it has been paid to the Government. The management is not fully conversant with the income-tax law. Therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bhuyan. None appears for the assessee. Mr. Joshi submits that both the Appellate Assistant Commissioner and the Tribunal erred in law in interpreting the provision ; of section 201(1A). Mr. Joshi submits that imposition of penalty and charging of interest can be made in two different circumstances. The Assessing Officer can impose penalty only when he is satisfied that the assessee has without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty. On going through the provision of section 201(1A) it is clear that interest has to be paid for delayed payment of tax. The section does not impose any restriction unlike penalty. The Assessing Officer has jurisdiction to impose penalty only when he finds that delay in payment was without good and sufficient reason. In view of the above, we are of the opinion that the Tribunal was not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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