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TMI Blog2015 (10) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 (12) TMI 873 - CALCUTTA HIGH COURT] - Decided in favour of assessee. - ITA No. 318/Coch/2014 - - - Dated:- 17-10-2014 - Shri N. R. S. Ganesan (JM) And Shri Chandra Poojari (AM),JJ. For the Appellant : Shri M. Anil Kumar, CIT For the Respondent : None ORDER Per N.R.S. Ganesan (JM) This appeal of the revenue is directed against the order of CIT(A)-II, Kochi darted 27-01-2014 and pertains to assessment year 2006-07. 2. Notice of hearing was issued by RPAD to the assessee; however, the same was returned with an endorsement locked by the postal authorities. Therefore, we heard the ld.DR and proceed to dispose of the appeal on merit. 3. Shri M Anil Kumar, the ld.DR submitted that the assessee is liable to dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reads as follows: (ia) any interest, commission or brokerage, rent, royalty, fees for professional services or fees for technical services payable to a resident, or amounts payable to a contractor or sub-contractor, being resident, for carrying out any work (including supply of labour for carrying out any work), on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, has not been paid on or before the due date specified in sub-section (1) of section 139: Provided that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after the due date specified in sub-section (1) of section 139, such sum sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r under this Act, he or it shall be liable to pay simple interest,- (i) 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 deducted; and (ii) At one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted 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.) Section 201(1A) enables the assessing officer to levy interest in case the tax was not deducted either wholly or partly or after deduction it was not paid as required under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pose 5of convenience, we are reproducing below paragraphs 34 and 35 of the judgment of the Andhra Pradesh High Court: 34. ................. We may now read the provisions of section 201. Consequences of failure to deduct or pay.- (1) If any such person and in the cases referred to in section 194, the principal officer and the company of which he is the principal officer does not deduct or after deducting fails to pay the tax as required by or under this Act, he or it shall, without prejudice to any other consequences which he or it may incur, be deemed to be an assessee in default in respect of the tax: Provided that no penalty shall be charged under section 221 from such person, principal, officer or company unless the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has to be strictly construed and it cannot be assumed that there is a duty to deduct the tax strictly in accordance with the computation under the Act and if there is any shortfall due to any difference of opinion as to the taxability of any item the employer can be declared to be an assessee in default. 12. After considering the provisions of section 201(1A) before amendment by Finance Act, 2001, the Andhra Pradesh High Court found that as required under this Act does not refer to mean to deduct tax in accordance with computation under the Act. In fact, the Parliament amended the section 201(1A) after this judgment of Andhra Pradesh High Court by incorporating the words the whole or any part of tax by Finance Act, 2001. The Divis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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