1989 (12) TMI 134

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....interest under section 201(1A) of the Income-tax Act, 1961. 2. The assessee is a registered firm. In making the assessment for the assessment years 1982-83 and 1983-84, the Income-tax Officer found that the assessee had not deducted tax at source while paying interest on capital borrowed. He, therefore, levied interest under section 201(1A) of the Income-tax Act. This was confirmed in appeal. ....

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....ons 192 to 194 imposing a duty on him to pay the sum deducted within the prescribed time. It was submitted that if words 'such person refers only to the persons referred in section 200, those persons are those who have deducted the tax and delayed in making payment and not those who have failed to deduct the tax. Hence, 'such person' does not take into account the persons who fail to deduct the ta....

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....01 refers to "such person" and since this expression does not occur earlier in any other section under this Chapter, we have to look into the scheme of the Chapter including in particular the sections 200 and 204 to understand the meaning of section 201. Section 200 refers to the duty of a person deducting the tax under sections 192 to 195 to pay it within the prescribed time to the credit of the ....

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....ment can exist even by necessary implication if it does not result in any violence to the language of the section. Since the attempt should be read a section so as to achieve the object rather than defeat its purposes, we are of the opinion that the words 'such person must be read as reference to the 'person responsible for paying' referred to in section 204 which will include the assessee, and he....