TaxTMI 
TaxTMI 
2011 (3) TMI 566
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....ic irrespective of the bona fide contentions/conduct of the appellant? (ii) Whether and in any event, interest under section 201(1A) can be charged for the period from May 6, 1997 when the order under section 201 read with section 194E was passed and notice of demand was issued on the basis of which interest under section 220(2) has also been charged with effect from May 6, 1997 on the same amount resulting in concurrent charging of interest under section 201(1A) and section 220(2) for the period from May 6, 1997 to February 8, 2000 on the same amount?" 4. The facts giving rise to the filing of this appeal may be summed up thus : (a) On 6-5-1997, the Income-tax Officer passed an order raising a demand of Rs. 2,18,29,300 under section 201 read with section 194E of the Income-tax Act, 1961. Against the said order dated 6-5-1997, an appeal was preferred before the Commissioner of Income-tax (Appeals) who, however, rejected the same by an order dated 17-11-1997. On further appeal, the Tribunal remanded the matter back to the Commissioner of Income-tax (Appeals) for a fresh decision. (b) By an order dated 28-12-1998, the Commissioner of In....
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....any interest under section 201(1A) at that stage did not arise. (g) Apart from the aforesaid ground, according to the assessee, it was not liable to deduct any tax under section 194E and the provisions of section 201 had no manner of application. The Income-tax Officer was requested to drop the proposal for imposing penal interest under section 201(1A). (h) The Income-tax Officer, however, by an order dated 28-2-2000 held that the assessee was liable to pay interest under section 201(1A) which was computed by him at Rs. 26,86,697, such interest being computed on the sum of Rs. 38,88,731 from the date on which the Income-tax Officer considered that tax was deductible in the years 1993, 1994, 1995 and 1996, as the case may be, to the date on which tax was actually paid, i.e., 8-2-2000. (i) By another order dated 28-2-2000, the Income-tax Officer without affording any opportunity to the assessee charged interest under section 220(2) amounting to Rs. 19,24,922. Such interest was calculated on the sum of Rs. 38,88,731 from the date of service of the demand notice, i.e., 6-5-1997 to the date of payment, i.e., 8-2-2000. (j) Aga....
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....d that an order charging interest under section 220(2) is not appealable under the Act and such decision had been followed by the Tribunal in the order dated 31-3-2004, the assessee felt that no purpose would be served by filing an appeal under section 260A against the said order of the Tribunal insofar as it related to interest charged under section 220(2). Accordingly, the assessee preferred appeal against the order dated 31-3-2004 by the Tribunal insofar as it related to interest charged under section 201(1A). 5. Mr. Bajoria, the learned senior Advocate appearing on behalf of the appellant, has contended before us that the procedure provided in the Act for recovery starting from section 156 of the Act, followed by the provision of section 220(1) and the consequential order under section 220(4) of the Act and the ultimate provision for recovery under section 222 are not applicable in a case where an order has been passed under section 201(1A) of the Act. 6. Mr. Bajoria, therefore, only prays for an observation in this appeal that section 201 of the Act read with sections 195 and 200 would indicate that a person responsible for deduction of tax at source in terms of section ....
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....fied in the notice of demand shall be paid within such period being a period less than the period of thirty days aforesaid, as may be specified by him in the notice of demand. (2) If the amount specified in any notice of demand under section 156 is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid : Provided that, where as a result of an order under section 154, or section 155, or section 250, or section 254, or section 260 or section 262, or section 264 or an order of the Settlement Commission under sub-section (4) of section 145D, the amount on which interest was payable under this section had been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded : Provided further that in respect of any period commencing on or before the 31st day of March, 1989 and ending after that date, such interest shall, in respect of so much of such period as fa....
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.... shall not treat the assessee as in default in respect of that part of the tax which is due in respect of that amount of his income which, by reason of such prohibition or restriction, cannot be brought into India, and shall continue to treat the assessee as not in default in respect of such part of the tax until the prohibition or restriction is removed. Explanation.-For the purposes of this section, income shall be deemed to have been brought into India if it has been utilised or could have been utilised for the purposes of any expenditure actually incurred by the assessee outside India or if the income, whether capitalised or not, has been brought into India in any form. 222. Certificate of Tax Recovery Officer.-(1) When an assessee is in default or is deemed to be in default in making a payment of tax, the Tax Recovery Officer may draw up under his signature a statement in the prescribed form specifying the amount of arrears due from the assessee (such statement being hereafter in this Chapter and in the Second Schedule referred to as "certificate") and shall proceed to recover from such assessee the amount specified in the certificate by one or more of the modes mentione....
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....x or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,- (i) 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 deducted; and (ii) at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid, and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200. (2) Where the tax has not been paid as aforesaid after it is deducted, the amount of the tax together with the amount of simple interest thereon referred to in sub-section (1A) shall be a charge upon all the assets of the person, or the company, as the case may be, referred to in sub-section (1). (3) No order shall be made under sub-section (1) deeming a person to be an assessee in default for failure to deduct the whole or any part of the tax from a person resident in India, at any time after the expiry of- (i) two yea....