Income Tax Appellate Tribunal - Kolkata
Ito vs Das Biri Mfg. Co. (P) Ltd. on 1 January, 1800
Equivalent citations: (1984)20TTJ(CAL)59
ORDER
--Order under s. 201(1A). Ratio :
Order under section 201(1A) for failure to deduct and deposit tax under section 194 is appealable.
Held :
Order under sections 201(1) and 201(1A) are simultaneous as section 201(1) deals with consequences of assessee having failed to deduct and deposit tax under section 194, and 201(1A) deals with peculiar aspect of these consequences. Order under section 201(1A) being appealable under section 246(1)(b), order under section 201(1) would also be appealable as otherwise the assessee would not have any other remedy.
Application :
Also to current assessment years.
Income Tax Act 1961 s.194 Income Tax Act 1961 s.201(1) Income Tax Act 1961 s.201(1A) Tax deduction at source--INTEREST UNDER S. 201(1A)--Chargeability Ratio:
Where the payments made by the assessee, a Bidi manufacturer, are real receipts of contractor or Munshis and they had to pay small portions out of the same to labourors engaged by them, assessee was defaulter, and was liable to pay interest under section 201(1A), however, no interest could be levied on the assessee if these persons were not assessed to tax with respect to such payment.
Held:
The liability of the assessee to deduct tax under section 194 in respect of payments made to Munshis is co-extensive with liability of Munshis or contractors to pay income-tax. The payments made by the assessee are if real receipts of contractors or Munshis and they had to pay only small portions out of the same to labourers employed by them, the assessee can be said to be a defaulter and liable to interest under section 201(1A). However, if these persons are not assessed to tax in relation to present payment, no interest can be levied on the assessee as well.
Application:
Also to current assessment years.
Income Tax Act 1961 s.194 Income Tax Act 1961 s.201(1A)