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TMI Blog2013 (4) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... emerges is that the even though the appellant herein is held as assessee in default, tax cannot be recovered from them, if the same has been paid by the recipient viz., TNREL. It is needless to say that the Assessing Officer should find out as to what extent the recipient had paid the tax. If the entire tax amount as claimed from the assessee herein has been paid by the recipient, then there cannot be any further demand of the same from the assessee. On the other hand, if the recipient had only paid part of the tax amount, then rest of the same shall be recovered from the assessee. Insofar as the interest demand is concerned, the assessee is liable to pay the interest from the date of its liability till the date of actual payment made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stantial questions of law raised in T.C.(A) No. 70 of 2013 :- 1. Whether on the facts and in the circumstances of the case, the Tribunal ought to have appreciated that interest under Section 201(1A) has to be determined year to year on the basis of amount payable for that year till the date the recipient has made arrangement for payment of tax or filed the return of income for that year ? 2. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in upholding the levy of interest under Section 201(1A) without considering the taxes already deducted and paid earlier ? 4. In both the Tax Case Appeals the facts are common in respect of the same assessment year 2003-2004. In T.C.(A).No.69 of 2013, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. Aggrieved by the order passed by the Assessing Officer, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals), who in turn confirmed the order of the Assessing Officer, by holding that the entire payments/ reimbursements to TNREL is covered by Section 194C of the Act. The assessee filed further appeal before the Income Tax Appellate Tribunal. The Tribunal also confirmed the order of the first appellate authority. Therefore, the present appeals are preferred before this Court. 8. Though the assessee had raised several grounds on merits and questioned the order of the authorities below in holding the assessee as defaulter under Section 201(1) of the Income Tax Act, the learned counsel appearing for the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion is made. It is also found by the Tribunal that it is a clear case where the assessee has failed to deduct tax on the entire contract payments made to the contractor and the assessee has also failed to produce any evidence for the taxes already deducted as contended by them . Therefore, the Tribunal found that the assessee is in default under Section 201(1) and also liable to pay interest under Section 201(1A) from the day on which the tax was required to be paid under Section 194C upto the date of actual payment. These factual findings rendered by all the authorities below in holding that the assessee is in default under Section 201(1) of the Income Tax Act do not warrant any interference by this Court. On the other hand, as already st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income. The Apex Court also relied on the circular issued by the Central Board of Direct Taxes in Circular No. 275/201/95-IT (B) dated 29.1.1997 wherein it is declared that no demand visualised under Section 201(1) of the Income Tax Act should be enforced after the tax deductor has satisfied the Revenue that taxes due have paid by the deductee-assessee. While holding so, the Apex Court however pointed out that such position will not alter the liability to charge interest under Section 201(1A) till the date of payment of taxes by the deductee assessee. 13. Going by the said decision, what emerges is that the even though the appellant herein is held as assessee in default, tax cannot be recovered from them, if the same has been paid by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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