9911796707
TMI Blog2005 (1) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the notice is the subject-matter of appeal before the Income-tax Appellate Tribunal in an appeal pending before the Tribunal and that the Appellate Tribunal has declined to grant stay in favour of the petitioner in respect of the liability, the subject-matter of appeal during the pendency of the appeal, and even during the pendency of the appeal the respondent-Income-tax Department has resorted to coercive recovery proceedings. Sri M.V. Javali, learned counsel for the petitioner, submits that the subject-matter of appeal before the Tribunal is the legality of levy of penalty on the petitioner for not having deducted the tax at source in respect of the interest payments made by the petitioner-company to the claimants who had put forth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not granting has enabled the respondent-Income-tax Department to issue notices under section 226(3) of the Income-tax Act and in the interest of justice such notices should be quashed and the petitioner extended the benefit of stay of recovery of the amount which is the subject-matter of appeal before the Tribunal. In the context of the submission, learned counsel has drawn my attention to the provisions of section 194A of the Income-tax Act (for short "the Act"), and draws particular attention to clause (ix) of section 194A of the Act inserted by the Finance Act, 2003, with effect from June 1, 2003, and submits that it is only thereafter the petitioner is required to deduct tax at source on payment of interest made to the claimants un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt, whether called 'Interest payable account' or 'Suspense account' or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly. (2) (Omitted by Finance Act, 1992, with effect from June 1,1992). (3) The provisions of sub-section (1) shall not apply... *(ix) to such income credited or paid by way of interest on the compensation amount awarded by the Motor Accidents Claims Tribunal where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid during the financial year does not exceed fifty thousand rupees." *Inser ..... X X X X Extracts X X X X X X X X Extracts X X X X
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