9911796707
TMI Blog1990 (10) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 1980-81 2,082 1981-82 2,565 1982-83 3,840 1983-84 4,218 1984-85 4,100 1985-86 3,864 1986-87 2,598 1987-88 1,537 2. Since the facts, the learned first appellate authority referred to para 2 of the ITO's order in respect of asst. yr. 1978-79, it is considered expedient to notice the said para in this order also: "On 4th Sept., 1987, Shri Yogesh Dhir attended and filed written reply duly signed by Smt. Usha Kumari, partner. It was stated that since the firm had Forms 15A in its possession, no tax was deducted at source. He was asked to give evidence regarding assessee's possessing Form No. 15A and why the same were not filed with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the proviso to s. 194A(1) of the Act had been obtained and furnished, the action of the assessee in not deducting income-tax at source from interest paid/payable was justified attracting no consequences of failure to deduct or pay tax as provided under s. 201(1A) of the Act, and, therefore, there could be no related implications, which could entail any liability on the assessee to pay interest as provided under sub-s. (1A) of s. 201 of the Act. 4. The learned first appellate authority justified his order of cancelling the levy of interest on the alternative ground independent of the decision as stated in the above para, also upto the asst. yr. 1985-86 and it is considered expedient to reproduce relevant portion of para 3 of his order to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olved from its responsibility from deducting income-tax on interest payable and, second, that when recovery of tax in relation to which the assessee could be deemed to be in default had become time-barred under s. 231 of the Act as mentioned in the appellate order, the interest under s. 201(1A) of the Act simply could not be computed and, therefore, validly charged. 6. After perusing orders and it being an admitted position that certificates in Form No. 15A had been obtained and there being no criticism in that regard from the Revenue the assessee was under no legal obligation to deduct income-tax in the first place. As far as the Revenue's contention of assessee's failure to file statements in Form No. 27A, such default, if any, could n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is deemed to be in default, or, in the case of a person, who was deemed to be an assessee in default under any provisions of 1961 Act, after the expiration of one year from the last date of the financial year in which the assessee was deemed to be in default. 8. A pause is necessary here to clarify that the assessee's case falls in the second category and, therefore, the period of one year was applicable in relation to assessments which were framed in the financial years ending before 31st March, 1984. For all the years copies of assessment orders have not been filed by the Revenue but from the copy of the assessment order for the year 1979-80 the date of assessment order is given on 26th April, 1980 and since continuation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o recovery of tax, no deduction of tax was made, no recovery proceedings could be taken after one year from the end of the financial year in certain years depending on the dates of assessments and after period of three years from the end of the financial year in relation to those assessments where assessments were framed on or after 1st Oct., 1984. 9. Therefore, I confirm the Dy. CIT(A)'s order in cancelling levy of interest on more than one grounds independent of each other. One is that the assessee having obtained the necessary certificates under r. 27-A of the IT Rules, 1962 read with s. 194A of the Act was in no legal obligation to deduct income-tax in respect of payment and secondly and independent of the said ground, the recovery p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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