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TMI Blog2003 (1) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... 201(1A) of the Act. According to him, there is no direct decision on this point except one by the Tribunal in Ess Kay Construction v. Asst. CIT [1997] 58 Taxman 32. Relying on this decision, he contended that interest under section 201(1A) was not leviable because the date of payment of tax deducted at source being not known, the interest was incapable of being calculated. The language used in section 201(1A) is different from the language used in sections 220(2) and 221. Under section 220(2) interest is chargeable from the date immediately following the end of the period mentioned in section 220(1) and ending with the date on which the amount is paid. This shows that the concept of continuing default is in-built in the section. Similarly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), it is provided that an "assessee in default", if he fails to deduct or if he fails to pay after deduction, is liable to pay simple interest at 15 per cent. per annum on the amount of tax deductible from the date on which it was so deductible till the date it is actually paid. Sub-section (1A) is without prejudice to the provision of sub-section (1). Therefore, in order to interpret sub-section (1A) aid of section 221 is not material. It has to be interpreted independent of it. The expression used in sub-section (1A) is clear and unambiguous. It postulates liability to pay interest at the rate provided on the amount deductible as tax from the date on which such tax was deductible until it is actually paid, if the "assessee in default" doe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time has been included in sub-section (1A). Unlike the restriction provided for in subsection (1), sub-section (1A) does not contain any restriction for charging interest thereunder. The provision of sub-section (1A) is mandatory and automatic. The interest is payable from the date the tax was deductible till the date it is actually paid. The liability is absolute. It is obligatory for the Assessing Officer to charge interest upon non-compliance of any of the provision requiring deduction at source if noticed by him. It may be for failure to deduct or for failure to pay after deduction. The expression "actually paid" is the outer limit for the purpose of calculation of interest. If it is not paid within the period prescribed under section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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