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TMI Blog2014 (9) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be only for the period commencing from the date of such tax was deductible to the date on which tax was actually paid – Decided against revenue. - ITA 82/2000 - - - Dated:- 23-8-2014 - Sanjiv Khanna And Sanjeev Sachdeva,JJ. For the Appellant : Mr. Kamal Sawhney, Advocate. For the Respondent : None. ORDER 1. Revenue by this appeal under Section 260A of the Income Tax Act, 1961 has raised the following two substantial questions of law, which were admitted for hearing vide order dated 07.11.2002. 1. Whether the Tribunal was correct in law in holding that the payment of tax by the employees absolved the assessee from the responsibility of deducting tax at source from the salary paid to them 2. Whether on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of tax due for delayed payment. However, the Tribunal did not accept and agree with levy of interest for the period commencing from 1st April following the Financial Year till the date of the order of levy of interest under Section 201(1A) observing that this was erroneous and cannot be sustained. This finding/direction is questioned. 5. The admitted position is that the foreign employees of the respondent/assessee had paid tax in India either by way of advance tax or self assessment tax. Tribunal has further observed that the Assessing Officer had himself not levied interest commencing from the period of deductibility of tax till the end of the Financial Year. Accordingly, the Tribunal was not inclined to enlarge the period for wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver of such interest on the basis that the default was not intentional or on any other basis. (See Bennet Coleman and Co. Ltd. v. V.P.Damle, Third ITO, [1986] 157 ITR 812 (Bom.) and CIT v. Prem Nath Motors (P). Ltd., [2002] 120 Taxman 584 (Delhi). Therefore, the second question is also answered in favour of the Revenue and against the assessee 6. It has been further observed in American Express Bank Ltd. (supra) that if the employees (i.e. payee) had paid taxes as per the individual return/assessment, no amount as tax would be payable to that extent and the liability for interest would be only for the period commencing from the date of such tax was deductible to the date on which tax was actually paid. [CIT vs. Adidas India Marketing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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