TaxTMI 
TaxTMI 
2016 (6) TMI 887
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....ecord. The assessee did not appear despite service of the notice. The written submission filed by assessee on record has been considered. It is stated that issue is same in both the appeals and ld. DR argued mainly in the case of assessee Shri Tarsem Singh Saini. Therefore, for the purpose of disposal of both the appeals, same is decided as under. ITA 810/2015 U ( Shri Tarsem Singh Saini ) 3. Briefly, the facts of the case are that in the year under consideration, assessee jointly alongwith Smt. Paramjit Kaur, wife of Shri Tarsem Singh Saini, purchased property bearing No. 2178, Sector 21-C, Chandigarh for a total purchase consideration of Rs. 1.35 Crores from non residents i.e. S/Shri Krishan Lal, Sohan Lal and Mohan Lal, residents o....
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....ficer also noted from the details on record that Non Resident sellers, later on declared capital gains on sale of their properties and paid the tax thereon, therefore, tax deductible was paid by the seller. However, in view of the judgement of Hon'ble Supreme Court in the case of Hindustan Coco Cola reported in 293 ITR 226, this does not absolve the assessee from liability to pay interest under section 201(IA) of the Act from the date when the tax was deductible to the date when the tax was paid by the deductee or from liability from penalty under section 271C of the Act. Accordingly, interest under section 201(1A) of the Act was charged in 50% share of the assessee. 5. The order under section 201(1A) of the Act was challenged before....
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....educt lax at source from the payments totaling Rs. 1,35,00,000/- made to the nonresidents Shri. Krishan Lal. Shri Sohan Lal & Shri Mohan Lal all sons of Shri Ram Chanel on 23.05.2008. It is also seen that in this case, the non- resident sellers later declared the capital gain amounting to Rs. 10,12,608/- each arising on the sale of property bearing No. 2178, Sector- 21 C, Chandigarh in their returns of income for the relevant assessment year i.e. AY 2009-10 filed on 20.11.2012 and paid the tax thereon. Therefore, the tax deductible was paid by the seller. However; in view of the judgment of Hon'ble Supreme Court in the case of Hindustan Coca Cola, reported 293 ITR 226. this does not absolve the assessee from the liability to pa....
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....operation of the statute itself, therefore, the demand is to be paid immediately. Issue demand notice. Penalty proceedings u/s 271C of the Income-tax Act, 1961 for failure to deduct tax at source are being referred to the Add/. Director of Income-tax. International Taxation. Chandigarh." The appellant has raised a plea that the payee/deductee has filed the return and has already borne taxes u/s 234A, 234B and 234C. It is noted that the interest u/s. 201(1 A) is compensatory and has been levied as a compensation only. The appellant's plea that the same is penal in nature is unfounded. There is no double charge of interest u/s 201(1A), as Section 234A. 234B and 234C operate in separate spheres. There might not have been any loss ....
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....has held that the "obligation of the payer to deduction is absolute." 5.3 In view of the aforesaid, the order of the Assessing Officer is upheld. The assessee fails in appeal. 6. The assessee in appeal has challenged the above orders of the authorities below. The sole contention of the assessee in the ground of appeal is that tax have been paid by the seller, assessee is not in default under section 201(1) and when deductee have paid the tax on capital gains alongwith interest under section 234A, B and C, no interest should be recovered under section 201(1A) of the Act from the assessee. Since is assessee is not in default, therefore, no interest is chargeable as per written submission of the assessee. The assessee in the writte....
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....ability, which presupposes existence of primary liability. Interest under section 201(1 A) read with section 201(1) can only be levied when a person is declared an assessee-in-default. The period of default starts from the date of deductibility till the date of actual payment. The payment by the concerned employee can be treated as the date of actual payment." 10. From the facts of the case in the light of the above decisions of the Hon'ble Supreme Court and the finding of fact recorded by ld. CIT(Appeals), it is clear that assessee is liable to pay interest under section 201(1) of the Act from the date when the tax was deductible to the date when tax was paid by the deductee. The sole contention of the assessee had been that since r....