9911796707
TMI Blog1994 (7) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 194A on the reasoning that it would serve no useful purpose as the Revenue authorities have been fully satisfied of the taxes that would have been collected in the hands of the recipient ? (2) Whether the Tribunal was right in holding that the amount of subsidy received from the Central/State Government is not to be deducted from the cost of plant and machinery, building, etc., for working out the cost for the purpose of depreciation, investment allowance, etc. ? " The relevant facts so far as the aforesaid questions are concerned, are that the Income-tax Appellate Tribunal came to the conclusion that proceedings for interest under section 201 need not be initiated in the hands of the assessee specially when there is no los ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing certain amount in total income, when the proceedings for reopening of assessment were initiated, it was held that the employer could not be deemed to be an assessee in default within the meaning of section 201 of the Income-tax Act, 1961, for not deducting at source tax payable on the amount. The provisions of section 201 require deduction of tax at source in respect of the matters referred to therein and failure to deduct the tax makes the person responsible by treating him as the assessee in default. Sub-section (1A) of the said section fastens the liability to pay simple interest at the rate of 12 per cent. per annum on the amount of tax from the date on which the tax was deductible till the date the tax was actually paid. The Financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the tax was deductible till the date on which the tax is actually paid. In the present case, the assessee who has entered into agreements with different persons, it cannot be possible nor it has been discussed or found as a fact by the Tribunal that the tax amount was deposited in time. The view which has been taken by the Tribunal following the decision of the Kerala High Court referred to above is not applicable to the facts of the present case as that was a case where the assessment was already completed and the tax was paid and thereafter proceedings under section 201 were initiated to demand further tax/interest from the employer. Looking to this interpretation of section 201 which we have taken, we are of the view that the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X
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