2008 (11) TMI 687

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.... 1. This appeal by the assessee is directed against the order dated 23.9.2002 of CIT(A) for assessment year 2000-01. Though the assessee in this appeal has raised several grounds, basic dispute is in relation to applicability of provisions of section 201 and 201(1A) for default in deducting tax at source. 2. The assessee who is a wholly owned subsidiary of Bank of Baroda is engaged in the cred....

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....ore in cash or by issue of cheque or draft or by any other mode whichever is earlier. Further, under the provision of sub section (2) of section 195, in case, the responsible person considers that the whole of such sum would be income chargeable in the case of receipt he may make an application to the Assessing Officer to determine by general order or special order the appropriate portion of such ....

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....al and Rs. 42,31,320/- in case of Visa Card International. He treated the assessee in default in respect of the above two sums and also held that the assessee was liable to simple interest at the rate of 18% per annum under section 201(1A) which was calculated at Rs. 22,40,596/-. 2.2 In appeal, CIT(A), noted that both Visa Card and Master Card had filed their return of income showing nil income....

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....sessee to deduct tax at source. He argued that the entire tax had been paid by the deductee as per mutual agreement procedure and therefore it would not be appropriate to hold the assessee in default for the same amount u/s. 201(1). The Learned DR on the other hand argued that even if the tax had been paid by the deductee the assessee is liable for interest under section 201(1A) in case the tax ha....