2015 (9) TMI 58

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....of the Act, as computed by the Assessing Officer by taking the period of delay on the basis of calendar month instead of month of 30 days as claimed by the assessee. 2. The assessee in the present case is a company incorporated on May 21, 2010 for execution of BOT Road and Tunnel Project at Quazigund, Jammu and Kashmir. A survey under section 133A was carried out in the case of the assessee on September 17, 2012 to verify the compliance of TDS provisions. As found during the course of survey, the assessee-company had purportedly deducted tax under sections 194C and 194J and also remitted the same to the Government account. There was, however, delay in the said remittance, for which, according to the Assessing Officer, interest of Rs. 32,....

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.... be a month of 30 days period as under : 5.4.2011 to 30.4.2011 One month 5.5.2011 to 1.6.2011 One month Total Two months"   4. The learned Commissioner of Income-tax (Appeals) did not find merit in the contentions raised by the assessee and relying on rule 119A(b) of the Income-tax Rules, 1962, she confirmed the levy of interest under section 201(1A) as computed by the Assessing Officer for the following reasons given in paragraphs 3.5 to 3.7 of her impugned order. "3.5 As per rule 119A(b) the interest is to be calculated for every month and any fraction of the month shall be deemed to be full month. It is also pertinent to mention that under section 244A, the Income-tax Department pays interest to the ....

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....s), the assessee has preferred his appeal before the Tribunal. 5. We have heard the arguments of both sides and also perused the relevant material on record. The issue involved in this appeal relates to the computation of interest payable by the assessee under section 201(1A), the provisions of which read as under : "201(1A). Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax 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 fro....

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....f a month shall be ignored ; and the period so rounded off shall be deemed to be the period in respect of which the interest is to be calculated ; (b) where the interest is to be calculated for every month or part of a month comprised in a period, any fraction of a month shall be deemed to be a full month and the interest shall be so calculated ; (c) the amount of tax, penalty or other sum in respect of which such interest is to be calculated shall be rounded off to the nearest multiple of one hundred rupees and for this purpose any fraction of one hundred rupees shall be ignored and the amount so rounded off shall be deemed to be the amount in respect of which the interest is to be calculated." 6. In the present case, ....