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TMI Blog2014 (4) TMI 775X X X X Extracts X X X X X X X X Extracts X X X X ..... demand visualized u/s 201(1) of the Act should be enforced after the tax deductor has satisfied the officer-in-charge of TDS, that taxes due have been paid by the deductee assessee - this will not alter the liability to charge interest u/s 201(1A) of the Act till the date of payment of taxes by the deductee assessee or the liability for penalty u/s 271C of the Act – thus, there is no infirmity in the order of CIT(A) – Decided against Revenue. - ITA No.1575/Del/2012 - - - Dated:- 21-3-2014 - J Sudhakar Reddy And A T Varkey, JJ. For the Appellants : Shri Khirendra Mohan Gupta, Adv. Ankush Kuthiala, CA For the Respondent : Shri Keyur Patel, Sr. DR ORDER:- PER : J Sudhakar Reddy This is an appeal preferred by the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hort deduction of tax and Rs.1,75,00,508/- on account of interest. 3. We have heard Shri Khirendra Mohan Gupta (Adv.), Ankush Kutti Ala, C.A. on behalf of the assessee and Shri Keyur Patel, Sr.D.R. on behalf of the revenue. 4. The First Appellate Authority in our considered view has correctly adjudicated the issue. At para 6 of his order he recorded that the arrear in question has accrued since the assessee has inadvertently deducted and deposited the tax u/s 119 J by applying the pre amended rate of 5% (+ surcharge and education cess). He further noted that the sole deductee, during the year for the assessee company was Motorola India Pvt.Ltd., which had duly paid all the taxes for the AY 2008-09. A copy of the return of income of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ability for penalty u/s 271C of the Act. The appellant has also placed reliance on the decision of the Hon ble Supreme Court in the case of CIT vs. Eli Lilly and Co.India P.Ltd. 312 ITR 225 wherein it has been held that once the deductees have paid taxes on their salary income by way of self assessment tax, tax could not be recovered from the employers u/s 201(1A) of the Act. 5. Similarly on interest levied u/s 201(1A) of the Act, relying on the same Circular and the judgement of the Jurisdictional High Court in the case of Hindustan Coca Cola Beverages P.Ltd. (supra), the Ld.CIT(A) held that no interest can be charged under the provisions of S.201(1A) of the Act, we find no infirmity in the same, and dismiss this ground of the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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