TMI Blog2021 (7) TMI 1229X X X X Extracts X X X X X X X X Extracts X X X X ..... rescribed certificate to that effect. Thus, if the assessee could demonstrate the fulfilment of all these requirements, he could not be treated as assessee-in-default. To get the benefit of the proviso, the assessee is directed to demonstrate the fulfillment of these requirements before Ld. TDS officer who shall consider the same. If the same are found in order, the assessee could not be treated as assessee-in-default and the demand raised for short deduction of TDS shall stand deleted. We order so. The ground thus raised stands allowed for statistical purposes. Computation of interest u/s 201(1A) - As per clause (i), The assessee is liable to pay simple interest on short payment of tax from the date on which tax was deductible to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal: - 1. NATURAL JUSTICE: 1.1 In the facts and the circumstances of the case, and in law, Commissioner of Income-tax Appeals - 59, Mumbai, [ The CIT(A) ] be held as held as bad and illegal, as the same is framed in breach of the principals of natural justice. 2. WITHOUT PREJUDICE TO THE ABOVE: 2.1 The Commissioner of Income - tax (Appeals) -59, Mumbai [ Id. CIT(A) ] erred in confirming, action of the A.O. in making addition on account of Short Deduction of TDS amounting to ₹ 91,770/- at Serial No. (2) of the Intimation u/s. 200A dated 07.10.2015. 2.2 It is submitted that, in the facts and the circumstances of the case, and in law, no such addition was called for. 2.3 Without prejudice to the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in law, the calculation of the interest is not in accordance with the law, is arbitrary and excessive. 5.1 The Ld. CIT (A) erred in setting aside to the A.O., the issue of levying Interest u/s. 201(1A) of the Act, 1961 on Late Deduction/ Collection amounting to ₹ 1,18,754/- at Serial No. 4(b) of the Intimation as stated above. 5.2 While doing so the CIT(A) erred in observing that, interest u/s. 201(1A) of the Act, 1961 is to be recomputed, the period for which will commence from the date on which tax was first deductible by the appellant deductor and conclude on the date of filing of the relevant return of income by the recipient deductees. 5.3 It is submitted that, in the facts and the circumstances of the case, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 1,18,754/- Total 4,22,710/- The default of short deduction arises from the fact that the assessee paid certain sum to two entities and deducted tax at source @5.61% as against correct rate of 5.665%. The interest component is consequential in nature. 1.5 The assessee assailed the interest demand listed at serial nos. 4(a) 4(b) before Ld. CIT(A) wherein the assessee, inter-alia, relied on the decision of Hon ble Apex Court in Hindustan Coca Cola Beverages Pvt. Ltd. (293 ITR 226) for the submission that since the recipients paid full taxes by way of advance tax or self-assessment tax, department could not recover the same f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of such return has to be paid and the credit of taxes goes to the payee. Similar was the decision of Mumbai Tribunal in Maharashtra Pollution Control Board V/s ITO (ITA No.902/Mum/2014 dated 25/08/2016). Even otherwise, the said view was in accordance with the statutory provisions of Sec 201(1A) of the Act. Finally, TDS officer and the assessee was directed to follow the procedure / documents as prescribed and provided in the first proviso to Section 201(1) 201(1A) read with Rule 31ACB along with notification no.11/2016 dated 02/12/2016 of the CBDT. The assessee was directed to file afresh the requisite details / documents to show the fulfilment of requirements of proviso to Sec.201(1) and allow relief only with respect to impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest on the amount of such tax from the date on which the tax was deducted to the date on which the tax was actually paid. However, it has been provided that in case the assessee is not treated as assessee-in-default in terms of first proviso to sub-section (1) then interest under clause (i) shall be payable from the date on which tax was deductible to the date of furnishing of return of income by the payee. Therefore, the statutory provisions are quite clear. The payment of interest shall be mandatory and the period shall run from the date on which tax was payable to the date of furnishing of return of income by the payee. We order so. To summarize, payment of interest is mandatory but the same may be re-computed at corr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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