TaxTMI 
TaxTMI 
1990 (10) TMI 117
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....0 1,775 1980-81 2,082 1981-82 2,565 1982-83 3,840 1983-84 4,218 1984-85 4,100 1985-86 3,864 1986-87 2,598 1987-88 1,537 2. Since the facts, the learned first appellate authority referred to para 2 of the ITO's order in respect of asst. yr. 1978-79, it is considered expedient to notice the said para in this order also: "On 4th Sept., 1987, Shri Yogesh Dhir attended and filed written reply duly signed by Smt. Usha Kumari, partner. It was stated that since the firm had Forms 15A in its possession, no tax was deducted at source. He was asked to give evidence regarding assessee's possessing Form No. 15A and why the same were not filed with the Department. He was also asked to state if statements in Form No. 27Awere filed by t....
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....ssessee in not deducting income-tax at source from interest paid/payable was justified attracting no consequences of failure to deduct or pay tax as provided under s. 201(1A) of the Act, and, therefore, there could be no related implications, which could entail any liability on the assessee to pay interest as provided under sub-s. (1A) of s. 201 of the Act. 4. The learned first appellate authority justified his order of cancelling the levy of interest on the alternative ground independent of the decision as stated in the above para, also upto the asst. yr. 1985-86 and it is considered expedient to reproduce relevant portion of para 3 of his order to avoid any controversy as to the projection of the Dy. CIT(A)'s mind in that regard: "It ....
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....t when recovery of tax in relation to which the assessee could be deemed to be in default had become time-barred under s. 231 of the Act as mentioned in the appellate order, the interest under s. 201(1A) of the Act simply could not be computed and, therefore, validly charged. 6. After perusing orders and it being an admitted position that certificates in Form No. 15A had been obtained and there being no criticism in that regard from the Revenue the assessee was under no legal obligation to deduct income-tax in the first place. As far as the Revenue's contention of assessee's failure to file statements in Form No. 27A, such default, if any, could not result in charging of interest under s. 201(1A) of the Act, which was depended and linked ....
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....assessee in default under any provisions of 1961 Act, after the expiration of one year from the last date of the financial year in which the assessee was deemed to be in default. 8. A pause is necessary here to clarify that the assessee's case falls in the second category and, therefore, the period of one year was applicable in relation to assessments which were framed in the financial years ending before 31st March, 1984. For all the years copies of assessment orders have not been filed by the Revenue but from the copy of the assessment order for the year 1979-80 the date of assessment order is given on 26th April, 1980 and since continuation of registration under s. 184(7) of the Act came to be granted for the said year it is presumed t....