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TMI Blog2015 (10) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... ovember, as taken in the first example, is less than a month because it is only when the same date comes in the next month, the period of one month can be said to have elapsed. Similarly, the period of 21st March to 18th March of the subsequent year, as per the British calendar, is less than 12 months since the period of twelve months has not elapsed in between these two dates. Coming to the case in hand, the period of time gap between 16th November 2010 to 14th December 2012 is less than 25 months because, on 14th December 2012, the period of 25 months has not elapsed from 16th November, 2010. The period which is elapsed between these two dates is 24 months and 28 days. Going by the provisions of the General Clauses Act, therefore, the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -98 to 2006-07, and 2009-10. 2. The short issue that I am required to adjudicate in these appeals as to what is the connotation of every month or part thereof appearing in Section 201(1A)- does it mean a calendar month or part thereof, or does it mean a period of one month or part thereof. 3. The background in which this controversy arises is like this. Hon ble Supreme Court had, vide judgment dated 7th November 2012 in this case, had directed the assessee can t be held as an assessee in default, in view of the directions of the High Court, for the period from 20.02.1996 to 15.3.2010 and hence was liable to interest only with effect from 16th November 2010 . Accordingly, the interest under section 201(1A) was required to be compu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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: Provided that in case any person, including the principal officer of a company fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a resident or on the sum credited to the account of a resident but is not deemed to be an assessee in default ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be taken as 13 months (i.e. 12X30= 360 days plus 2 days as part of the month). This approach also, thus, leads to incongruous, and, if I may say so, somewhat absurd results. Clearly, therefore, approach followed by the authorities below does not merit my approval 7. There is no dispute that the expression month is not defined for the purpose of Section 201 (1A) nor there is any direct judicial authority in the context of Section 201. Section 3(35) of the General Clauses Act defines month as, unless there is anything repugnant in the subject or the context, a month reckoned according to the British calendar . The expression reckoned , in plain English, refers to count, compute or calculate . In substance thus, the mandate of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber, 2010. The period which is elapsed between these two dates is 24 months and 28 days. Going by the provisions of the General Clauses Act, therefore, the period of time between 16th November 2010 to 14th December 2012 is less than 25 months, and, accordingly, interest under section 201(1A) could not have been levied for a period of more than 25 months. 8. During the course of arguments before me, the connotations of calendar month were argued at length but these discussions proceeded on the fallacious assumption that the expression month , appearing in Section 201(1A), is either required to be interpreted as a calendar month or a period of thirty days. As a matter of fact, as evident from the discussions above, the expression month ..... X X X X Extracts X X X X X X X X Extracts X X X X
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