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2014 (11) TMI 487 - HC - Income TaxCalculation of interest u/s 234C – Date of presentation of cheque - Whether interest u/s 234C of the Act is to be calculated based on date of clearing of the cheque or date of presentation of the cheque – Held that:- Following the decision in Commissioner of Income Tax v. Ogale Glass Works Ltd. [1954 (4) TMI 3 - SUPREME Court] - none of the cheques has been dishonoured on presentation and payment cannot, therefore, be said to have been defeated by the happening of the condition subsequent, dishonour by non-payment and that being so there can be no question, that the assessee did not receive payment by the receipt of the cheques - The position is that there was an implied agreement under which the cheques were accepted unconditionally as payment and on another view, even if the cheques were taken conditionally, the cheques not having been dishonoured but having been cashed, the payment related back to the dates of the receipt of the cheques and in law the dates of payments were the dates of the delivery of the cheques’ - Once the cheque issued by the assessee is encashed, the payment relates back to the date of receipt of the cheque – no substantial question of law arises for consideration – Decided against revenue.
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