TODI INVESTMENTS P LTD Vs. INCOME TAX OFFICER
INCOME TAX APPELLATE TRIBUNAL
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Anand Prakash, Accountant Member -
(1.) A short but interesting point has been raised in this appeal revolving round the interpretation of Sub-Section (1A) of Section 201 of the Income-tax Act, 1961 ('the Act'), read with Section 194A and Rule 30, of the Income-tax Rules, 1962.
(2.) The facts are in a very narrow compass and may be noted. The accounting year of the assessee-company for the assessment year 1979-80 ended on 31-3-1979. On 15-5-1979, its books of account were seized by the department in terms of Section 132 of the Act. Inspection of the said books was granted to the assessee-company on 10-8-1979. The appellant company took extracts from the seized books of account, and copied out accounts from the cash book and ledger and thereafter, finally adjusted its books of account sometime in September 1979 on the basis of the information gathered from the inspection of its seized books of account. The various creditors' accounts were credited with interest in September 1979. Tax under Section 194A was deducted at the time of making the said credits and such tax deducted at source was paid in the Reserve Bank of India on 16-10-1979.
The ITO felt that tax should have been deducted from the interest credited to the aforesaid creditors' accounts and paid to the Government within two months from the date when the accounts were to be closed, i.e., 31-3-1979, and inasmuch as it had not been done, interest was chargeable from the assessee in terms of Sub-Section (1A) of Section 201, read with Rule 30(1)(b)(i)(1).
(3.) ON appeal, the learned Commissioner (Appeals) held that the aforesaid action of the ITO was entirely in order. The present appeal is directed against the aforesaid order.;
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