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TMI Blog2013 (12) TMI 1109X X X X Extracts X X X X X X X X Extracts X X X X ..... paid the taxes, the liability of the asessee ceases from the day they have paid the taxes - This exercise has not been done by the AO - He had adopted the due date of filing of return of income for the purpose of calculation of interest u/s 201(1A) – The issue was restored for fresh decision. - ITA Nos.865 to 870/Bang/2012 - - - Dated:- 28-2-2013 - George George K And Jason P Boaz, JJ. For the Appellant : Shri K P Kumar, Adv. For the Respondent : Shri Etwa Munda, CIT-III ORDER:- PER: Bench These six appeals instituted by the assessee company are directed against the consolidated order of the CIT (A)-II, Bangalore dated 17.4.2012. The relevant assessment years are 2004-05 to 2009-10. 2. As the issues raised by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompanies, extensively quoting the provisions of s. 194 J of the Act and its applicability in the assessee s case and also for the detailed reasons recorded in his impugned order(s) under consideration, the AO had treated the assessee an assessee in default u/s 201(1) of the Act and also levied interest u/s 201(1A) of the Act for all the assessment years under appeal [AYs 2004-05 to 2009-2010]. 5. Aggrieved, the assessee took up the issues before the then CIT (A) for relief. With regard to the levy of interest u/s 201(1A) of the Act, the then CIT (A) was of the view that interest u/s 201(1A) of the Act is to be charged only up-to the date of payment of taxes by the hospitals and directed the AO to re-compute the interest u/s 201(1A) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 22.2.2010 which has been given effect to by the AO, has held so. Once the deductor has failed to deduct tax, payment of taxes by the payee can be determined only when the payee files his return of income and pays tax and has to be read as date of filing of return in case where the return of income is filed and taxes thereon already paid before filing the return of income or the date of actual payment of tax in case taxes due are paid subsequent to filing the return of income. In my view, the decisions of the judicial authorities and also the order of CIT (Appeals)-V, Bangalore referred to above are to be interpreted as such. No instance has been brought on record by the appellant to say that the return of income has been filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest. The assessee relies on the ruling of the Hon ble jurisdictional High Court in the assessee s own case in WP Nos.6385786 and 647173/2010 dated 14.3.2012 on the same issue. 7.1. On the other hand, the learned D R present supported the stand of the authorities below on the issue. 8. We have carefully considered the submissions of either parties, perused the relevant materials on record. 8.1. At the out-set, we would like to recall the ruling of the Hon ble jurisdictional High Court while dealing with the assessee s W.P.Nos.6385-86 6471-73/2010 dated 14.3.2012. For appreciation of facts, we extract the observations of the Hon ble Court as under: (On page 8) 4. It is also submitted that, in the Circular it is made clear ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sible only after verifying the records of both the assessee and the creditor of the assessee. To that extent the impugned order passed is set aside. Accordingly, the appeal is partly allowed and the matters are remitted back to the assessing authority to undertake the exercise and find out the liability of interest payable by the assessee. Ordered accordingly. No costs. Even otherwise the law is well settled that the payment of interest under the Act is compensatory in nature. The authorities shall re-do the exercise of calculating the interest and thereafter issue a fresh demand if they choose to recover the same. That would meet the ends of justice . 8.2. On a decisive perusal of the observations of the Hon ble Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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