2004 (11) TMI 305

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.... he has sustained the levy of penal interest of Rs. 17,350 under s. 201(1A). 2. After hearing rival submissions and on perusal of material available on record, it appears that the AO has charged the interest by mentioning that the responsible person has deducted tax short. The CIT(A) has confirmed the order by mentioning that: "...because tax deducted during the financial year should be equa....

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....e, reading this s. 192, it is clear that though normally it is the average of the yearly tax this is relevant, but by virtue of sub-s. (3) which allows adjustment on account of excess or deficiency, the amount of tax deductible each month need not necessarily be uniform. Therefore, the variations being on this account, the AAC was justified in holding that no interest was leviable." 4. In the i....