1994 (11) TMI 94

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....A J.--By this reference under section 256(1) of the Income-tax Act, 1961, made at the instance of the applicant-assessee, the Income-tax Appellate Tribunal has referred the following question of law to this court for opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in taking the view that the provisions of section 201(1A) for levying interest....

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....ach occasion and demanded the same from the assessee. The assessee appealed before the Commissioner of Income-tax (Appeals) in respect of the interest levied by the Income-tax Officer for the assessment years under consideration. The main ground on which the assessee objected to the levy of interest was extreme financial difficulties of the assessee. The Commissioner of Income-tax (Appeals) upheld....

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.... " 201 (1A). Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest at twelve per cent. per annum on the amount of such tax from the date on which such tax was deductible ....