TaxTMI 
TaxTMI 
TaxTMI 
2019 (8) TMI 810
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....na (hereinafter referred to as 'the Tribunal') in ITA No. 48 (Pat) of 2011 for the assessment year 2008-09, whereby 'the Tribunal' has dismissed the appeal of the appellant to confirm the order passed by the Commissioner of Income Tax (Appeals) dated 3.3.2011 who in turn has confirmed the order passed by the Assessing Officer for levy of interest on the default by the appellant in deduction of tax at source on the interest paid by the appellant on the deposits made by the Official Liquidator appointed by the Patna High Court on behalf of the Company in liquidation, namely, Rohtas Industries Limited in exercise of powers vested under Section 201 of 'the Act'. The appellant is a nationalized Bank whose business premises was surveyed by the r....
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....on the deposits made by the Official Liquidator of Patna High Court is concerned, the order of the Assessing Officer was upheld. The appeal was allowed in part by the order passed on 3.3.2011 enclosed at Annexure 3. In view of the position so settled under the orders of the statutory authorities referred to above that a demand for Rs. 12,63,589/- was raised which was inclusive of the element of tax as well as interest, a copy of which is at Annexure 5 to the appeal. The appellant feeling aggrieved moved in second appeal before the Income Tax Appellate Tribunal which appeal has been dismissed by the judgment and order impugned dated 24.2.2012 confirming the order passed by the Commissioner of Income Tax (Appeals) and feeling aggrieved the ....
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....ny in liquidation for its distribution pari passu amongst the creditors, the company in liquidation running huge losses was not liable to tax. According to learned counsel, even if the interest earned on the fixed deposit was to be included in the income of the company in liquidation, there yet would be no liability to pay tax as the interest element would be set off with the losses present and carried forward. In this context learned counsel has referred to the provisions of Section 197A of 'the Act' to submit that a person would not be liable to tax if his total income is NIL. Learned counsel in support of his submissions has relied upon the judgment of Allahabad High Court rendered in the case of Commissioner of Income Tax (TDS) Lucknow....
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....ure to do so has classified them as assessee in default to face the consequences as present in Section 201 of 'the Act'. In reference to the judgment of the Supreme Court in the case of Vijaya Laxmi Sugar Mills Ltd. (supra) it was submitted that a similar issue fell for consideration before the Supreme Court and the interest generated on the fixed deposits was treated as income from the other sources for being taxed under Section 56 of 'the Act'. According to Ms. Sinha, had it been a case where the Official Liquidator had filed a certificate under Section 197A of the Act informing the Bank of NIL income, the appellant had reasons for such non-deduction as happened in the case of BIADA and IDA. In reference to the case of the Bihar State Hou....
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....ing Board and the Official Liquidator of Patna High Court. The order of the Assessing Officer, the Assistant Commissioner of Income Tax at Annexure 1 passed in purported exercise of jurisdiction under sections 201(1) and 201(1A) of 'the Act' gives the details of interest generated on deposits in each case as well as the tax deductable against the same. The statutory ladder through which the case has moved confirms that while a demand in its entirety on default of such deduction was raised by the Assistant Commissioner of Income Tax, the same was modified by the order passed under section 154 of 'the Act' in view of the certificates of exemption submitted under section 197A by M/s BIADA and by M/s IDA. The matter moved in appeal as against ....