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TMI Blog2022 (11) TMI 1063X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. Where there is no liability to deduct TDS, the mere fact that TDS was so deducted and paid to the Income Tax Department belatedly, cannot give rise to a claim for interest under sub-section (1A) of Section 201. We feel that this can be the only reasonable interpretation that can be placed under the provisions of Section 201, as interest under sub-section (1A) of Section 201 is obviously to compensate the Government / Income Tax Department for the delay in payment of taxes, which are rightfully due to the Government. It is clear from Ext.P1 that the delay in remitting the amounts deducted as TDS arose only on account of the fact that the Officer in question was deputed for election duty for the period from January 2014 to May 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er that the officer then holding the charge of Special Tahsildar Land Acquisition (General), Malappuram was deputed for election duty during the period from January 2014 to May 2014 in connection with the General Elections to the Lok Sabha, 2014. A certificate issued by the Deputy Collector (Election), Malappuram has been annexed to the writ petition as Ext.P1, to confirm this fact. 2. Smt.Thushara James, the learned Senior Government Pleader appearing on behalf of the petitioner contends that the levy of interest under sub-section (1A) of Section 201 is clearly unwarranted, in the facts and circumstances of this case. It is submitted that a reading of the provisions of Section 201 clearly indicate that the liability to deduct tax and to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes of the Income Tax Act and as defined in Section 2(14) of the said Act is to be the subject matter of inquiry and merely because refunds have been granted to the land owners in question, it cannot be said that the lands in question are agricultural lands falling outside the definition of capital asset under Section 2(14) of the Income Tax Act. The learned Standing Counsel also submits that the fact that the petitioner had actually remitted the tax deducted on 30.06.2014 shows that interest was to be levied in terms of sub-section (1A) of Section 201 of the Income Tax Act. He also submits that on refund to the respective tax payers, the Income Tax Department had to pay interest even from a date prior to the date on which the amounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion does not equate the writs that can be issued in India with the those in England, but only draws in analogy from them. That apart, High Courts can also issue directions, orders or writs other than the prerogative writs. It enables the High Courts to mould the reliefs to meet the peculiar and complicated requirements of this country. Any attempt to equate the scope of the power of the High Court under Article 226 of the Constitution with that of the English Courts to issue prerogative writs is to introduce the unnecessary procedural restrictions grown over the years in a comparatively small country like England with a unitary from of Government to a vast country like India functioning under a federal structure. Such a construction defeat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mere fact that TDS was so deducted and paid to the Income Tax Department belatedly, cannot give rise to a claim for interest under sub-section (1A) of Section 201 of the Income Tax Act. I feel that this can be the only reasonable interpretation that can be placed under the provisions of Section 201, as interest under sub-section (1A) of Section 201 is obviously to compensate the Government / Income Tax Department for the delay in payment of taxes, which are rightfully due to the Government. I must also note that it is clear from Ext.P1 that the delay in remitting the amounts deducted as TDS arose only on account of the fact that the Officer in question was deputed for election duty for the period from January 2014 to May 2014 in connection ..... X X X X Extracts X X X X X X X X Extracts X X X X
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