https://www.taxtmi.com/caselaws?id=13164 Whether interest under Income Tax Act s. 201(1A) was chargeable for failure to deduct tax at source under s. 192(1) on perquisites, the HC held that interest liability arises automatically by operation of law upon default in remitting tax by the due date, is compensatory (not penal), and does not depend on "good or sufficient reason" or on the eventual tax liability of the assessee. Since s. 201(1A) is a machinery provision to compensate for use of public funds and legislative scheme distinguishes interest from penalty, the Tribunal erred in deleting the levy. The references were answered against the assessee and in favour of the Revenue, restoring interest for AYs 1967-68 to 1971-72. en-us Wed, 05 Sep 2001 00:00:00 +0530 Mon, 22 Dec 2025 19:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13164 Whether interest under Income Tax Act s. 201(1A) was chargeable for failure to deduct tax at source under s. 192(1) on perquisites, the HC held that interest liability arises automatically by operation of law upon default in remitting tax by the due date, is compensatory (not penal), and does not depend on "good or sufficient reason" or on the eventual tax liability of the assessee. Since s. 201(1A) is a machinery provision to compensate for use of public funds and legislative scheme distinguishes interest from penalty, the Tribunal erred in deleting the levy. The references were answered against the assessee and in favour of the Revenue, restoring interest for AYs 1967-68 to 1971-72. Case-Laws Income Tax Wed, 05 Sep 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13164