9911796707
TMI Blog1988 (6) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... t the entire interest received by the assessee company was from companies. When the interest become due to the assessee at the end of their previous year instead of crediting the interest amount to the assessee's account the said companies credited the same to interest payable account. At that point of time no credit whatsoever was given to the assessee's account. Further, no TDS was also deducted at that time. The assessee accordingly debited the interest receivable by it not in the account of the payers but to interest receivable account. This estimated interest was offered by the assessee for taxation. The ITO further noted that that system was being followed by the assessee company consistently. He further noted that after a lapse of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to us the definition of the term 'assessed tax' as given in s. 215 (5) of the Act and has urged that in view of the said definition the tax determined on the basis of the regular assessment was required to be reduced by the amount of tax deductible in accordance with the provisions of ss. 192 to 194, ss. 194A, 194C, 194D and 195. Mr. Patel vehemently urged that the authorities below have failed to take note of the vital distinction between the meaning of the word 'deductible' and 'deducted'. According t Mr. Patel, statute had deliberately used the word 'deductible' in the definition of the term 'assessed tax' and therefore, the ITO should not have ignored the credit for the amount of tax deducted at source on the sole ground that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc., as mentioned above. In the above meanings given to the term 'assessed tax' in the language of s. 215 (5), the expression 'assessed tax' used in s. 215(1) of the Act shall have to be understood as the tax finally assessed as reduced by the amount of tax deductible in accordance with the provisions of ss. 192 to 194 etc., as mentioned above. It may be noted that s. 215 of the Act permits levy of interest only on the difference between the assessed tax and advance tax actually paid and so long as the said section does that the amount of tax deductible at source will have to be taken note of. Reading the meaning of the expression 'assessed tax' in that way the word 'deductible' occurring in the language of s. 215(5) could not be confused f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest on tax on the same income. The Legislature would not have contemplated such a situation where in respect of the tax on interest income, two persons are liable to pay interest for the delayed payment of tax. We are, therefore, inclined to hold that wherever there is a possibility of a deduction of tax at source, the person who had failed to deduct tax at source is liable to pay interest and not the assessee, as otherwise, there will be charging of interest twice on the payment of tax in relation to the same income. Such an interpretation should normally be avoided. In this case, therefore, the Tribunal appears to be right in holding that in terms of s. 215, interest could not be levied on the assessee on the tax which is deductible a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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