1980 (12) TMI 92

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..... on the staff of the school as many as 19 teachers. Assessee used to deduct out of the salaries payable to the said staff of 19 teachers certain amounts by way of tax at source. During the financial years under consideration also, such deductions were made at source and the amounts so deducted were deposited into the Govt. Treasury, as required under law. For the three financial years under conside .....

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..... nd appeal. A number of contentions were raised before us. Firstly, it was urged that the ITO, T.D.S. Salary Cir II,New Delhi, who made the impugned order levying interest had no jurisdiction, inasmuch as the assessee being a trust was being assessed to income tax by the ITO,Trust Circle. On our query, assessee's counsel stated that monthly returns were being filed to the ITO, T.D.S. Salary Cir. II .....

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..... rred. We are unable to agree. The order as a whole as such cannot be struck down as being time barred. According to us, in face of the provisions of s. 231, the Department's power to levy interest for the periods subsequent to31st March, 1976,31st March, 1977and31st March, 1978, in respect of three years under consideration would stand curtailed. In other words, interest could have been levied onl .....

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..... rithmetical exercise. But in a case where delayed deposit of amount deducted is not involved, it was necessary for the ITO to hear the assessee before interest could be levied. In this view of the matter, question arises whether we should remit the matter to the ITO so that he can cure the infirmity that crept in the proceedings taken by him. We consider that course unnecessary in the instant case .....

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..... otherwise, the assessee employer exposes himself to levy of interest under s. 201(1A). In the present case, it may be noted that there is no material on the record to show that on the assessments, as individually made on the various employees concerned, the amounts assessed under the income head 'Salary' were on point of fact found to be larger than the amounts on basis of which deductions were m .....

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