9911796707
TMI Blog2015 (3) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the period of delay on the basis of calendar month instead of month of 30 days as claimed by the assessee. 2. The assessee in the present case is a company incorporated on 21.5.2010 for execution of BOT Road and Tunnel Project at Quazigund, Jammu and Kashmir. A survey under S.133A was carried out in the case of the assessee on 17.9.2012 to verify the compliance of TDS provisions. As found during the course of survey, the assessee company had purportedly deducted tax under S.194C and 194J and also remitted the same to the Government account. There was, however, delay in the said remittance, for which, according to the assessing officer, interest of Rs. 32,28,121 was payable by the assessee under S.201(1A). Since interest under S.201(1A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nths ..." 4. The learned CIT(A) did not find merit in the contentions raised by the assessee and relying on Rule 119A(b) of Income-tax Rules, 1962, she confirmed the levy of interest under S.201(1A) as computed by the Assessing Officer for the following reasons given in paragraph No.3.5 to 3.7 of her impugned order. "3.5 As per Rule 119A(b) the interest is to be calculated for every month and any fraction of the month shall be deemed to eb full month. It is also pertinent to mention that under S.244A, the income tax department pays interest to the assessee, the interest is to be calculated on refund as per Rule 119A, therefore, even though the rate of interest collected by the Department and paid by the department vary, the peri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of which read as under- "201.(1)...... (1A) Without prejudice to the provisions of subsection (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deduction fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest, - (i) At one percent 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; an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be so calculated; (c) the amount of tax, penalty or other sum in respect of which such interest is to be calculated shall be rounded off to the nearest multiple of one hundred rupees and for this purpose any fraction of one hundred rupees shall be ignored and the amount so rounded off shall be deemed to be the amount in respect of which the interest is to be calculated." 6. In the present case, clause (ii) of S.201(1A) read with Clause (b) of Rule 119A is applicable and it provides that where the interest is to be calculated for every month or part of a month comprised in a period, any fraction of a month shall be deemed to be a full month, and the interest shall be so calculated. The dispute in this context as involved in the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
