TaxTMI 
TaxTMI 
2014 (3) TMI 178
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....he appeals are time barred by 51 days but the assessee has moved a petition seeking condonation of delay. Having perused the petition and having heard learned Departmental Representative on the same, we deem it fit and proper to condone the delay and proceed to take up the appeals on merits. Accordingly, we admit the appeals for consideration on merits. 3. To adjudicate on these appeals, only few material facts need to be taken note of. The A.O. (TDS) has raised the demands on the assessee, a Government Undertaking, on account of assessee's not having deducted tax at source in respect of discount of recharge vouchers of the franchisees namely M/s. Tarriya Agencies and M/s. Music Centre. When assessee carried the grievance in appeal befor....
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....rakashan Ltd Vs DCIT [(2012) 21 taxmann.com 489 All] also has, inter alia, observed as follows: ...........it is clear that deductor cannot be treated an assessee in default till it is found that assessee has also failed to pay such tax directly. In the present case, the Income tax authorities had not adverted to the Explanation to Section 191 nor had applied their mind as to whether the assessee has also failed to pay such tax directly. Thus, to declare a deductor, who failed to deduct the tax at source as an assessee in default, condition precedent is that assessee has also failed to pay tax directly. The fact that assessee has failed to pay tax directly is thus, foundational and jurisdictional fact and only after finding that assessee....
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....aw, once this information is submitted is for the Assessing Officer to ascertain whether or not the taxes have been paid by the recipient of income. This approach, in our humble understanding, is in consonance with the law la id down by Hon'ble Allahabad High Court. 8. It is important to bear in mind that the lapse on account of nondeduction of tax at source is to be visited with three different consequences - penal provisions, interest provisions and recovery provisions. The penal provisions in respect of such a lapse are set out in Section 271 C. So far as penal provisions are concerned, the penalty is for lapse on the part of the assessee and it has nothing to do with whether or not the taxes were ultimately recovered through other me....
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.... additional burden on the Assessing Officer before he can invoke Section 201(1) but that' show Hon'ble High Court has visualized the scheme of Act and that's how, therefore, it meets the en d o f justice. 9. As far as levy of interest under sect ion 201(1A) is concerned, this interest is admittedly a compensatory interest in nature and it seeks to compensate the revenue for delay in realization of taxes. Hon'ble Bombay High Court, in the case of Bennett Coleman & Co Ltd Vs ITO (157 ITR 812) has held so. Therefore, levy of interest under section 201(1A) is applicable whether or not the assessee was at fault. However, since it is only compensatory in nature it is applicable for the period of the date on which tax was required to be deducte....