TMI Blog2008 (10) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... liability. The Tribunal has rightly directed that the interest paid above Rs. 50,000 is to be split and spread over the period from the date interest is directed to be paid till its payment. If the spread over is given in majority of cases the respondent may not incur liability to pay any TDS. In the event, the respondent remits TDS amount as directed by the Tribunal, the Revenue is directed to h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent. The award amount consisted of the compensation and interest liability. 2. The provisions of section 194A(3)(ix) mandates that when the respondent pays interest liability more than Rs. 50,000, it should deduct TDS to an extent or 10.3 per cent, of the interest component. In default, the respondent becomes liable to pay the said amount to the Revenue under section 201 of the Income-tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n denying the interest has filed the appeal. The respondent has not preferred any appeal against the order to the extent adverse to its interest. 5. In the above appeal, the following substantial questions of law are formulated for consideration: "(i) Whether the Tribunal was correct in holding that no interest need be paid by the assessee for non-deduction of TDS (being consequential) after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Mittal Steel's case [1999] 240 ITR 707 (Karn), the proviso to section 201(1) was under consideration. The said proviso empowers the levy of penalty if the TDS deduction is not effected for any valid reason. However, section 201(1A) is a distinct provision to levy interest for delayed remittance. It is in the practice of the Revenue that for belated payment of tax for any reasonable cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liability to pay any TDS. In the event, the respondent remits TDS amount as directed by the Tribunal, the Revenue is directed to hold suo mottu enquiry by issuing notice to the persons who have received compensation to find out their tax liability on the interest received. If it is found that there is a tax liability on the person concerned, the Revenue should collect the tax from the person conc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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