TaxTMI 
TaxTMI 
2001 (9) TMI 82
X X X X Extracts X X X X
X X X X Extracts X X X X
....stion reads as under: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that no interest was chargeable under section 201(1A) in respect of the assessment years 1967-68 to 1971-72?" The dispute realtes to the assessment years 1967-68 to 1971-72. During the assessment proceedings, the Assessing Officer noted that the assessee had not properly deducted tax at source as required to be done under section 192 of the Act and the same had not been deposited with the Government. He noticed that two of the employees of the company, namely, Surender Nath and Divendra Nath, had been paid commission and perquisites apart from salaries received by them, While submitting the details of the employees i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sel for the Revenue. There is no appearance on behalf of the assessee in spite of notice. Learned counsel for the Revenue submitted that the true scope and ambit of section 192(1) in the background of section 201(1A) has not been kept in view by the Tribunal. It is submitted that the levy under section 201(1A) is automatic, and, therefore, the question of existence of any good or sufficient reason did not arise. For resolution of the issue, reference to sections 192(1) and 201(1A) as they existed at the relevant time would be necessary. They are as follows: "192. (1) Any person responsible for paying any income chargeable under the head 'Salaries' shall, at the time of payment, deduct income-tax on the amount payable at the average ra....
X X X X Extracts X X X X
X X X X Extracts X X X X
....his prima facie inference may be regarded by other considerations such as the object and scope of the enactment and con sequences flowing from such construction. In Sainik Motors v. State of Rajas than, AIR 1961 SC 1480, it was observed by the apex court that the word "shall" is ordinarily mandatory, but it sometimes is not so, if the context or intention otherwise demands. When a statute uses the word 'shall", prima facie, it is mandatory, but the court may ascertain the real intention of the Legislature by carefully attending to the real scope of the statute. In considering whether a statute is imperative, a balance may be struck between the inconvenience of sometimes rigidly adhering to it and the convenience of sometimes departing from ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tation, prohibitive or negative words can rarely if ever be directory. And this is so even though the statute provides no penalty for disobedience. Negative words are clearly prohibitory and are ordinarily used as a legislative device to make a statute imperative. Affirmative words stand on a weaker footing than negative words for reading the provision as mandatory, but affirmative words may also be so limiting as to imply a negative. "Interest" is a consideration paid either for use of money or for forbearance in demanding it, after it has fallen due. It is a compensation allowed by law or fixed by parties or permitted by custom or usage for use of money belonging to another or for the delay in paying the money after it has become payable.....