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TMI Blog2009 (12) TMI 731X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee were not decided while passing the aforesaid order. Hence, the Tribunal recalled the order for consideration on the merits of the issues which remained undecided. Pursuant to this recall order these appeals have been fixed before us. Learned counsel for the assessee submitted that the following issues now remain to be adjudicated as under : (i) That ex parte order to charge TDS and interest is wrong and there was no notice to show cause for the same. (ii) Order to charge the TDS was time barred. (iii) There was no liability to pay interest for late payment on TDS. The brief facts of the case are that there was survey by the TDS wing of the Income-tax Department, on the assessee on July 29, 2004. Some verifications wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cussed in paragraph 1 as above. Now we deal with the issues in appeal at present as under : (i) That ex parte order to charge TDS and interest is wrong and there was no notice to show cause for the same. On this issue we note that Assessing Officer has duly issued showcause notice on August 26, 2004. In the said notice it has been brought to the notice of the assessee the various lacunae and shortcomings in a very detailed manner and the assessee has been given date to respond till September 10, 2004. Learned counsel for the assessee fairly accepted that this ground raised by the assessee is misconceived, as the show-cause notice has duly been served. Accordingly, this issue raised by the assessee is dismissed. (ii) Order to charge TD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d hence we quash the same. (iii) There was no liability to pay interest on late payment on TDS : Learned counsel for the assessee contended that the assessee was not liable for any interest on late deposit of TDS. For this learned counsel for the assessee submitted that as per the CBDT's Circular No. 4P dated July 21, 1966 provisions of section 201 are not applicable in case where the tax is deductible by or on behalf of the Government vide section 204. On this basis learned counsel for the assessee argued that the assessee is not liable to pay any interest on the impugned amounts. We have carefully considered the submission. We find that section 204 postulates, the meaning of "person responsible for paying" : (i) in the case of payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce reliance placed by learned counsel for the assessee on the above circular is misplaced. Another realm of learned counsel for the assessee's submission in this regard is that no TDS was liable to be deducted as the contract was for supply of material. In this regard, he referred to the orders of the learned Commissioner of Income-tax (Appeals) pursuant to the remand by the Tribunal wherein the learned Commissioner of Income-tax (Appeals) has accepted that these payments were for supply of goods. Hence, learned counsel argued that there was no requirement of deduction of TDS as the assessee has deducted the same. Hence, he claimed that on this basis, the assessee cannot be held responsible for paying any interest. The learned Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest at one per cent. for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is actually paid and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200. (2) Where the tax has not been paid as aforesaid after it is deducted, the amount of the tax together with the amount of simple interest thereon referred to in sub-section (1A) shall be a charge upon all the assets of the person, or the company, as the case may be, referred to sub-section (1). The abov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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