9911796707
TMI Blog1982 (12) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 132 of the Act. Inspection of the said books was granted to the assessee-company on 10-8-1979. The appellant company took extracts from the seized books of account, and copied out accounts from the cash book and ledger and thereafter, finally adjusted its books of account sometime in September 1979 on the basis of the information gathered from the inspection of its seized books of account. The various creditors' accounts were credited with interest in September 1979. Tax under section 194A was deducted at the time of making the said credits and such tax deducted at source was paid in the Reserve Bank of India on 16-10-1979. 3. The ITO felt that tax should have been deducted from the interest credited to the aforesaid creditors' acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y cash or cheque, etc., whichever be earlier. The actual act of crediting the interest to the accounts of creditors, in the case of the assessee, was done in September 1979. So the liability to deduct tax accrued and arose only in September 1979. Within two months of it, the assessee should have deposited the tax deducted at source in the treasury or with (sic) Reserve Bank of India. The assessee did it and, therefore, in his opinion, there was no default. The default was being sought to be presumed against the assessee not with reference to the language of sub-section (1) of section 194A, but with reference to the language of the rule which visualized a third date also to be taken into account for the purpose of depositing the tax deducted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule 30 may also be noted at this stage. The said sub-rule, so far as it is relevant for our purpose, reads as follows : " The person responsible for making deduction under section ... 194A ... shall pay the amount of tax so deducted to the credit of the Central Government by remitting it within the time prescribed in sub-rule (1) into any branch of the Reserve Bank of India ... accompanied by an income-tax challan... " 7.3 The heading of the aforesaid rule is as follows : " Time and mode of payment to Government account of tax deducted at source " 7.4 Rule 30 has been made to give effect to the provisions of section 200 of the Act. The provisions of section 200 may, therefore, also be noted at this stage. They read as follows : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 200 deals with the deposit of tax so deducted and rule 30 indicates the time-limit within which such tax deducted by the person concerned should be deposited. Section 194A, has, therefore, to be looked up to find out the point of time when tax according to the said section was deductible from the interests paid. We have already extracted the relevant part of the section above, and from a perusal thereof, it would be clear that the liability to deduct tax arises at the point of time when credit of interest to the account of the creditor is given or interest is in fact paid to the creditor, whichever be earlier. In the present case, admittedly, interest has been disbursed later, but the credit for it to the creditors account has been giv ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
