https://www.taxtmi.com/caselaws?id=59873 The Tribunal held that interest charged under section 201(1A) of the Income-tax Act was justified, despite the financial crisis faced by the assessee company. The Tribunal emphasized that penalty and interest serve different purposes, with interest being compensatory and not absolved by financial difficulties. Recovery proceedings being barred by limitation did not exempt the assessee from interest payment. The Tribunal rejected arguments that reasonable cause for non-payment justifies interest deletion, affirming the Assessing Officer's decision to charge interest and allowing the departmental appeals. en-us Mon, 11 May 1992 00:00:00 +0530 Sat, 01 Jan 2011 16:00:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59873 The Tribunal held that interest charged under section 201(1A) of the Income-tax Act was justified, despite the financial crisis faced by the assessee company. The Tribunal emphasized that penalty and interest serve different purposes, with interest being compensatory and not absolved by financial difficulties. Recovery proceedings being barred by limitation did not exempt the assessee from interest payment. The Tribunal rejected arguments that reasonable cause for non-payment justifies interest deletion, affirming the Assessing Officer's decision to charge interest and allowing the departmental appeals. Case-Laws Income Tax Mon, 11 May 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59873