2014 (9) TMI 320

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....er Section 260A of the Income Tax Act, 1961 has raised the following two substantial questions of law, which were admitted for hearing vide order dated 07.11.2002. "1. Whether the Tribunal was correct in law in holding that the payment of tax by the employees absolved the assessee from the responsibility of deducting tax at source from the salary paid to them" 2. Whether on the facts and cir....

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....pondent/assessee and salaries were also paid in foreign currency in their bank accounts abroad. These contracts of employment were duly approved by the Ministry of Mines for the purposes of Section 10(6) of the Act. 4. A question arose, whether the respondent/assessee was liable to deduct tax at source under Section 192 of the Act on the salaries paid to the foreign technicians. Tribunal, by th....

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....bunal has further observed that the Assessing Officer had himself not levied interest commencing from the period of deductibility of tax till the end of the Financial Year. Accordingly, the Tribunal was not inclined to enlarge the period for which the interest was payable. In the subsequent paragraphs, Tribunal has held and directed the Assessing Officer to re-compute levy of interest for the peri....

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....h of this Court in the case of CIT v. ITC Limited, ITA No.475/2010, dated 11.05.2011. The said Division Bench observed as under:- "xxxx xxxx xxxx xxxx However, levy of interest under section 201(1A) is neither treated as penalty nor has the said provision been included in Section 273B to make "reasonableness of the cause" for the failure to deduct a relevant consideration. Section 201(1A) ma....