9911796707
TMI Blog1989 (6) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessments and noticing that the respondent-assessee had not deducted tax from interest paid to Shri Salamat Rai Sehgal of Jalandhar levied interest under section 201(1A) of the Act and the following graphical chart shall project the necessary related details :--- -------------------------------------------------------------------------------------------------------------------------------------------------- Asst. Intt. Tax to be Date of Actual Period Intt. year paid deducted payment date of of late u/s at source to the payment payment 201(1A) Govt. Y M A/c -------------------------------------------------------------------------------------------------------------------------------------------------- 81-82 4800 480 April, 81 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recipient. The Tribunal followed the decision of CIT v. LIC [1986] 52 CTR (MP) 278. " 4. It would be sufficient if I refer to the judgment of the Honourable Madhya Pradesh High Court in the case of CIT v. Life Insurance Corporation of India [1986] 52 CTR (MP) 278. In that case, in accordance with the provisions of section 206 of the Act, the Divisional Manager of the Life Insurance Company of India, Sagar filed for the assessment year 1977-78, the annual return of salary in respect of its employees showing the amount of tax deductible under section 192 of the Act. The ITO noticing that tax was not properly deducted in the case of some of the employees recomputed the income of those employees and demanded under section 201 of the Act, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istinct limbs, as far as the defaults stated therein are concerned. Whereas in respect of default contemplated under Sub-section (1) it is provided that no penalty shall be charged under section 221 of the Act unless the Assessing Officer is satisfied that non-deduction of tax at source was without reasonable cause, there is no such rider in relation to sub-section (1A). Sub-section (2) operates in an entirely different field and provides that the charge shall be upon all the assets. To complete the picture, section 201 should be brought in close focus and, therefore, reproduced as under : " Consequences of failure to deduct or pay. 201.(1) If any such person and in the cases referred to in section 194, the principal officer and the compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1). 8. The Finance Act, 1966 made some fundamental changes w.e.f. 1-4-1966 in section 201, inasmuch as, in the proviso to sub-section (1) the words "without good and sufficient reasons" were substituted for the word "wilfully". Sub-section (1A) was inserted but the rate referred to therein was 6% at that time which was increased to 9% w.e.f. 1-10-1967 by the Taxation Laws (Amendment) Act, 1967 and later increased to 12% w.e.f. 1-4-1972 by the Finance Act, 1972. A further amendment by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984 has increased the rate of interest to 15% but the amendment has clarified that the increase in the rate of interest will apply in respect of any period falling after 30-9-1984 and also in those cases wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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