W THE HIGH COURT OF KARNATAKA AT BAN§r£§..LOR'E .
DATED THIS ma 04TH DAY 0? AUGUS"--E.' 200$':
PRESENT. -
THE HON'BLE MR.Jus*ricEi'=K.1§;jw;NJL:1$ip;9if1~§.VV A
THE I~iON'BLI:?. MR. Jtssf1f1§§;.A; s%,%?A§iHm,PuV£2E
INCOME TAX A9PE_A$; r:6';4§39Vi 2904.
BETWEEN:
KARNATAKA UF'<,E%;AN:_II§iFRAS'I'RU(3TU_RE'" 1
DEVELOPMENT FENANC 5; CGRPORATi('3.N.,_
No.8,xsc'MF BUiLf:3ING,1";V ' _
M33111, 2% FLOOR,'-E3UNbF£NGZiAf»§_R€3AD,
BANGALORE -'sac: :::_5:a.~_'=._
REP'RESEN'I'E§3 BY zTs"'r.aARAi£_.s
DIRECTOR, MR.§;.?,K121Vsg1r~{AvN, MAJOR. : APPELLANT
" - {BY s5¢I;}as;1fc::4: V;{UL;{AA'rar~:r:.,...A«av. FOR M/S.K.R.PRASAD, Amn;
»
1." . '€.'CI'§a1:hriI§§.Siw£§NER OF INCOME TAX
mwmnsy IV, CH__OF.VGULE HOUSE,
cREsc..§;mv_ra;2E -- 560 001. : RESPONDENTS
. .'(~B’¥h”‘SE§§;M.V.SESHACHALA, Ar3v.}
THIS I.’F.A. IS FILED UNDER SECTiON 260-A OF THE INCOME TAX
b AC’i’, 1961, ARISING OUT OF ORDER DATED 22.3.2094 PASSED IN ITA
‘ * ” NO.715/BANGIQGO1 FOR THE ASSESSMENT YEAR 2000-2001 PRAYENG TO
FORMULATE THE SUBSTANTIAL QUESTEONS OF LAW STATED THEREIN
AND ALLOW THE APPEAL AND SET ASIDE THE’. RODER PASSED BY THE
INCOME TAX APPELLATE TRIBUNAL IN ETA 330.712 TO VISIBANG/2001 IN
YEA 140.715] BANGIQOOI DATED 22.3.2004 AND CONSEQUENTLY CANCEL
THE ORITGLR PASSED BY THE COMMISSIONER OF’ INCOME TAX {APPEALS}
-3-
or it may incur, be deemed ‘ to be an assess§:e..
default in respect of the tax:
Provided that no p_e3:sa.1’_cy 4_ V
charged under sccfion 221
principal oficer or compsny ‘-uniessv ‘ VV .
(Assessing) Officer is T’ A-sash’
person or primripal 61″: .
case may be,’ A: 1~”:as good
suflicicnt IB&SOI}.S’)J pay
the -. 8
Section 2v”1″(2.a)’jLa1s§s*sssd’s.;;s has-susgisr:
‘*'{;1A). to the provisions of
sub~sé’c1_ion such person, principal
cgificgr of as is referred to in that sub–
. V sot”déduct (the whole or any part of
the-V deducfing fails to pay the tax as
_ under this Act, he or it shall be
A ~i’x_§ simple intencst at { [twelve] per cent
on the amount of such tax from the
., A’ ‘ cciatson which such tax was deductible to the date
V’ which such tax is actually paid [and such
interest shall be paid before furnishmg the
quarterly statement for each quarter in
accordance with the provisions of sub–sectio;t1 (3)
of section 200].}”
&/
-9-
7. After reading these two sections, we are of theopixlion
that levy of penalty under Section 201 and levy of
Section 2011 (1A) are entirely different. By accepttng
shown by the asseseee, an Assess’it1g–. AO£{fice_rV”‘ Iviax§j:1g”‘v.oaV ‘ ;
discretion to drop the penalty A’ lite
deducted under Section 195 of the”Inconte “t_:he’assesseee I
is bound to pay interest, as it isVAa—-Inantiato1y’provisVi;o§n. Even if
the penalty proceedings — _Section 201, the
assessee cannot escape his intetest under Section
201 (1A)}._ T}1eIetote;V._§?eoare_IVof__tI3.e.’opin:ion that both the sections
axe independent not :inter«iinked and they cannot
be reag1eo.njunetéyely1asV’ie§y of interest and levy of penalty are
pmceflfi In the circumstances, we have to
advanced by the revenue and reject the
contention’ by the learned counsel for the assessee.
Aceoztiingiy’, We answer Quesfion No.2 in favour of the revenue
.against the assessee.
8. In the Iesuit, the appeal is allowed in pan. The order
A ” ” passed by the Assessing Oficer confirmed by the Commissioner
of Income Tax (Appeals) and further confirmed by the Income
3/
-19-
Tax Appeilate ‘§’ri¥3una.1 in levying penalty
the income Tax Act is hereby set .asid.c7 ” ‘ j
interest under Section 20:: (rm) of th;’eA:n;+;_o:fie 9i’-a=;§’A};r
confirmed. ” V
Sd/’r-
Judge JL """ ._