Case Law Details
In respect of TDS not deducted by Assesee on Interest Income of Trust which was disclosed in his return of Income by deductee Trust and on which taxes alongwith interest been paid by deductee trust it was held by ITAT that In respect of levy of interest under Section 201(1A) of the Act the interest is to be computed for the period from the date from which the tax was deductable to the date of filing of the return by the deductee (VTU). This is because once any income is liable for TDS then in the hands of the deductee no interest under Section 234A, 234B & 234C can be levied in respect of such income. Therefore till such income is disclosed by the deductee in its return the liability of the tax rests on the deductor. Once the deductee has filed his return disclosing such income then for such return to become valid the taxes of such return should have been paid and the liability in respect of such taxes and the credit for such taxes goes to the deductee only.
Full ITAT Order is as follows
1. ITA No. 207/PAN/2016 to ITA.NO.210/PAN/2016 are appeals filed by the assessee State bank of Mysore, Main branch against the orders of Learned CIT(A) Belagavi in appeal no. ITA No.592/BGM/2014-15 dated 29/08/2016 and ITA No.591/BGM/2014-15 dated 29/08/2016, ITA No.590/BGM/2014-15 dated 29/08/2016 and ITA No.594 /BGM/2014 – 15 dated 29/08/2016 for the assessment years 2011-12, 2012-13, 2013-14 and 2014-15 respectively. ITA No.207 & 208/PAN/2016 for the assessment years 2011-12 & 2012-13 are against the confirmation of the levy of interest under Section 201(1A) and ITA No. 209 & 210/PAN/2016 for the assessment years 2013-14 and 2014-15 are against the confirmation of the levy under Section 201(1) of the Act. ITA No.211/PAN/2016 to ITA.NO.215/PAN/2016 are appeals filed by the M/s State Bank of Mysore, Hindwadi Branch against the orders of the Learned. CIT(A) in appeal No ITA No.560/BGM/2014-15 dated 29/08/2016, ITA No.561/BGM/2014-15 dated 29/08/2016, ITA No.567/BGM/2014-15 dated 29/08/2016 and ITA No.564/BGM/2014-15 dated 29/08/2016 for the assessment years 2011-12, 2012-13, 2013-14 and 2014-15 respectively.
2. It was the submission that in respect of ITA’s 211/PAN/2016 and 212/PAN/2016 the appeals were against the confirmation of the levy of interest under Section 201(1A) and in respect of ITA.NO. 213/PAN/2016, ITA.NO.214/PAN/2016 and ITA.No.215/PAN/2016 it was against the confirmation of the levy under section 201(1) of the Act. Shri Manjit Singh represented on behalf of the Revenue and Shri Shivprasad S Parnatti, CA represented on behalf of the Assessee.
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