1986 (8) TMI 132

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.... appeal by the Executive Engineer, T.L.C. Division, Andhra Pradesh State Electricity Board, Visakhapatnam, against the levy of interest under section 201(1A) of the Income-tax Act, 1961 ('the Act'). 2. The assessee is the Executive Engineer, T.L.C. Division. The appeal is against the ITO charging interest under section 201(1A). The appeal is time barred by five days and a petition for condonati....

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....ing the financial year. As there was delay in the deduction of tax, though remittance was made within the financial year, he levied interest of Rs. 710 under section 201(1A). 4. The assessee carried the matter in appeal to the AAC. The AAC noticed that except in one case no tax was deductible in the case of the other employees. It was only on grant of ex gratia payment and additional dearness a....

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....non-taxable limit. Besides, certain lump sums were paid in the months of February and March. However, as soon as the assessee noticed that the provisions of section 192 of the Act are attracted, he deducted the tax and paid the full amount to the credit of the Central Government well within the financial year and, in the circumstances, he submitted that the levy of interest be cancelled. 6. Shr....

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....tipulates deduction of income-tax at the time of payment on the estimated income of the assessee under the head 'Salaries', sub-section (3) of section 192 gives a margin for the employer to adjust the tax deductions in the case of short deduction or excess deduction or in the case of failure to deduct during the financial year. In the case of the assessee the assessee has deducted tax within the f....