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July 2023

Glimpses of Supreme Court Rulings

By Kishor Karia, Chartered Accountant
Atul Jasani, Advocate
Reading Time 6 mins
Tax deducted at source (TDS) – Belated payment of TDS - Section 271C(1)(a) is applicable in case of a failure on the part of the concerned person / Assessee to “deduct” the whole of any part of the tax as required by or under the provisions of Chapter XVII-B and failure to pay the whole or any part of the tax is dealt by Section 271C(1)(b) but it does not speak about belated remittance of TDS - No penalty is leviable on belated remittance of TDS – In such cases, prosecution can be launched in appropriate cases in terms of Section 276B. 40. US Technologies International Pvt Ltd vs. CIT (2023) 453 ITR 644 (SC) From 1st January, 2002 to February, 2003, the Appellant - Assessee, engaged in a software development business at Techno Park, Trivandrum which employed about 700 employees, deducted tax at source (TDS) in respect of salaries, contract payments, etc., totalling Rs.1,10,41,898 for A.Y. 2003-04. In March, the Assessee remitted part of the TDS being R38,94,687 and balance of Rs.71,47,211 was remitted later. Thus, the period of delay ranged from 05 days to 10 months. On 10th March, 2003, a survey conducted by the Revenue at Assessee’s premises noted that TDS was not deposited within the prescribed dates under Income Tax Rules (IT Rules). On 2nd June, 2003, Income Tax Officer (ITO) vide order under section 201(1A) of the Act levied penal interest of Rs. 4,97,920 for the perio
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