https://www.taxtmi.com/caselaws?id=14361 The High Court of Kerala upheld the levy of interest under section 201(1A) in a case involving a contractor who sub-contracted work and deducted tax at source inadequately. The court determined that interest under section 201(1A) is mandatory and compensatory for withholding tax, emphasizing that it accrues automatically for delayed payments. The court differentiated between sections 201 and 201(1A), affirming the Assessing Officer's authority to charge interest for the delayed payment of the deducted amount. The decision in CIT v. Kannan Devon Hill Produce Co. Ltd. [1986] 161 ITR 477 (Ker) was deemed inapplicable to the case. en-us Tue, 27 Feb 2001 00:00:00 +0530 Wed, 15 Jul 2009 13:49:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14361 The High Court of Kerala upheld the levy of interest under section 201(1A) in a case involving a contractor who sub-contracted work and deducted tax at source inadequately. The court determined that interest under section 201(1A) is mandatory and compensatory for withholding tax, emphasizing that it accrues automatically for delayed payments. The court differentiated between sections 201 and 201(1A), affirming the Assessing Officer's authority to charge interest for the delayed payment of the deducted amount. The decision in CIT v. Kannan Devon Hill Produce Co. Ltd. [1986] 161 ITR 477 (Ker) was deemed inapplicable to the case. Case-Laws Income Tax Tue, 27 Feb 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14361