2002 (11) TMI 79

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....t had actually paid tax on the income or the income had been held to be non-assessable? 2. Whether, on the facts and in the circumstances of the case, the Tribunal ought to have held that whatever burden lay on the assessee for not being regarded as an assessee in default under section 201 had been discharged? 3. Whether the Tribunal erred in holding that the proceedings initiated under section 201 of the Income-tax Act, 1961, were not barred by limitation?" Preface: At the outset, it may be mentioned that the Tribunal did not refer to this court the first two questions. That, the Tribunal referred to this court only the third question, vide, I.T.R. No. 44 of 1986. Therefore, the assessee-bank made an application to this court u....

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....erred to as recipients). That, the said non-deduction of tax at source was detected during the course of the proceedings for the assessment year 1975-76. In the circumstances, the Inspecting Assistant Commissioner treated the assessee-bank as assessee-in-default and also called upon the assessee under section 156 to pay Rs. 8,31,419 being the tax which the assessee ought to have deducted at the appropriate rates. A similar order was passed on March 7, 1979, against the assessee-bank for non-deduction of tax at source from interest payable to the recipients, which was detected during the proceedings for the assessment year 1976-77. The assessee-bank contended before the Inspecting Assistant Commissioner that the sums have been included in th....

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....recipients. Accordingly, the first appellate authority cancelled the two orders of the Inspecting Assistant Commissioner. Being aggrieved, the Department carried the matter in appeal to the Tribunal. The Tribunal confirmed the order of the Commissioner of Income-tax (Appeals) with certain modifications. Under the modifications, the demand under section 156 was set aside and the Inspecting Assistant Commissioner was directed to pass fresh orders, after giving opportunity to the assessee to prove its case, viz., that the said sums have been taxed in the hands of the recipients of the interest amounts. The Inspecting Assistant Commissioner was also directed to verify whether Coca Cola Export Corporation had paid the tax on the interest inco....