2010 (8) TMI 201

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....ent. Barin Ghosh,C.J. (Oral) The respondent assessee paid salary to its employees during the relevant assessment year, but did not deduct tax in each month. It deducted tax in October, 1999 and in February, 2000. The Assessing Officer imposed interest on the assessee under Section 201 (1A) of the Income Tax Act. That was assailed before the CIT Appeals unsuccessfully. The matter was taken to....

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....ions 1 and 3 of Section 192 of the Act as well as Section 201 (1A) of the Act, which are as follows:- "192. Salary. (1) Any person responsible for paying any income chargeable under the head "salaries" shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the [rates in force] for the financial year in which the payme....

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....s required by or under this Act, he or it shall be liable to pay simple interest at [one per cent for every month or part of a month] on the amount of such tax from the date on which such tax was deductible to the date on which such tax is actually paid [and such interest shall be paid before furnishing the quarterly statement for each quarter in accordance with the provisions of sub-section (3) o....

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....n, the same attracted the provision for imposition of interest. 4. It is true that Sub-Section 1 of Section 192 of the Act contemplates deduction of Income Tax at the time of payment and at the same time, Section 201 (1A) deals with a situation when tax is not deducted, but Sub-Section 3 of Section 192 is a part of Section 192 required to be read with Sub-Section 1 thereof, for nothing has been....