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1 - 10 of 63 (0.31 seconds)Section 234B in The Income Tax Act, 1961 [Entire Act]
Section 195 in The Income Tax Act, 1961 [Entire Act]
Cit vs Vijay Ship Breaking Corporation & Ors. on 20 March, 2003
Subsequently on 20-3-2003, Gujarat High Court in the case of CIT v. Vijay Ship Breaking Corporation and Ors. took the view, contrary to the view taken by the Andhra Pradesh High Court in the case of Visakhapatnarn Port Trust (supra) that the TDS provisions are applicable to the usance interest. Due to the decision of the Gujarat High Court, the demand for TDS not deducted under Section 195(1) read with Section 201(1) amounting to Rs. 52,80,400 and also the interest under Section 2C1(1A) read with Section 201(1) was raised by the assessing officer vide order dated 12-7-2004.
Commissioner Of Income-Tax vs Vijay Ship Breaking Corporation on 20 March, 2003
The fact that the said decision was not there on the date when the incidence to deduct tax at source arose, has no material bearing on the issue as the same cannot restrict the liability of the assessee to pay interest under Section 201(1A) for the rest of the period i.e. from the date of pronouncement of decision in the case of CIT v. Vijay Ship Breaking Corpn. (supra) till the actual payment of TDS. The liability to pay interest under Section 201(1A) was from the date of payment of usance interest as the tax was not deducted and paid on usance interest. Such liability was creation of statute and is not dependent on pronouncement of decision. The proposition of law that decision of High Court is "statement of law which law had always been and must always be understood to have been" is supported by the following decision:
Commissioner Of Income-Tax, Andhra ... vs Visakhapatnam Port Trust on 17 June, 1983
Subsequently on 20-3-2003, Gujarat High Court in the case of CIT v. Vijay Ship Breaking Corporation and Ors. took the view, contrary to the view taken by the Andhra Pradesh High Court in the case of Visakhapatnarn Port Trust (supra) that the TDS provisions are applicable to the usance interest. Due to the decision of the Gujarat High Court, the demand for TDS not deducted under Section 195(1) read with Section 201(1) amounting to Rs. 52,80,400 and also the interest under Section 2C1(1A) read with Section 201(1) was raised by the assessing officer vide order dated 12-7-2004.
Section 192 in The Income Tax Act, 1961 [Entire Act]
Haryana Warehousing Corporation vs Deputy Commissioner Of Income Tax on 25 July, 2000
Reliance was heavily placed on the Third Member decision of Delhi Bench of Tribunal in the case of Haryana Warehousing Corporation v. Dy. CIT (2000) 69 TTJ (Del)(TM) 859 : (2001) 252 ITR 34 (AT). It was pointed out that in this case also the assessee was granted exemption in respect of certain income in prior years on the basis of only High Court decision on the subject. Subsequently Rajasthan High Court delivered the judgment on 1st Dec, 1993 that the exemption is not available in respect of those incomes. The decision of Rajasthan High Court was subsequently affirmed by the Hon'ble Supreme Court when the interest under Section 234B was imposed. It was held that although the interest is mandatory but it is imposable only if assessee was liable to pay advance tax.
Star India (P) Ltd. vs Cce on 30 March, 2005
The learned Commissioner (Appeals) erred in law and on the facts of the case in deleting the interest of Rs. 3,58,632, levied under Section 201(1A) of the Income Tax Act, 1961 ignoring the fact that the provisions of Section 201(1A) are on the statute and not amended retrospectively and hence the facts in this case and that of Star India (P) Ltd. v. CCE are distinguishable.
Pentagon Engineering (P.) Ltd. vs First Income-Tax Officer on 28 December, 1982
23. The liability to interest, it may be stated, is not a penal one but compensatory in view of the decisions of Supreme Court in CIT v. Anjum M.H. Ghaswala and Central Provinces Manganese Ore Co. Ltd. v. CIT as also various High Courts decisions i.e., Pentagon Engg. (P) Ltd. v. CIT , CIT v. Dhanalakshmy Weaving Works , CIT v. Prem Nath Motors (P) Ltd. , Kanoi Industries (P) Ltd. v. Asstt. CIT , West Bengal State Electricity Board v. Dy. CIT and Anr. and Emakulam District Co-operative Bank Ltd. v. Asstt. CIT and Anr. . Therefore the bona fide belief of the assessee, even if was there, would not be of any help and on compensatory ground the assessee had to pay interest as the money due to Government was utilized by the assessee until paid.