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2020 (2) TMI 454 - AT - Income TaxDemand on Interest on delayed payment of TDS - calculation of interest - Orders passed u/s. 201 and 201(1A) - Period of limitation - AY 2004-05 - HELD THAT:- The Hon’ble Madras High Court in the case of CIT vs. Chennai Metropolitan Water Supply & Sewerage Board [2011 (9) TMI 224 - MADRAS HIGH COURT] had held that interest u/s. 201(1A) has to be calculated from the date on which tax should have been deducted to the date on which payee should have filed its return under provisions of the Act. It was further held by Hon’ble High Court that interest u/s. 201(1A) of I.T. Act is automatic. As mentioned earlier, the Assessing Officer had only passed order u/s. 201(1A) of I.T. Act for AY 2004-05. The interest u/s. 201(1A) since it is to be calculated from the date on which tax is to be deducted and being mandatory, the Assessing Officer has correctly calculated interest u/s. 201(1A) of the I.T. Act for the amount of TDS outstanding as on 31-03-2004., It is ordered accordingly. Thus, the appeal of the assessee for the assessment year 2004-05 is dismissed. AY 2005-06 - DR submitted that the payment has been made subsequent to the order passed u/s. 201(1) & 201(1A) and there is no point in remitting the issue to the file of the Assessing Officer - The impugned order u/s. 201(1) and 201(1A) of the I.T. Act was passed on 04/02/2013. In the said order, balance TDS outstanding as on 31/03/2005 was determined at ₹ 1,50,529/- and interest u/s. 201(1A) of the I.T. Act was calculated up to the date of the order, i.e., 04.02.2013 amounting to ₹ 1,43,002/-. The payment made subsequent to the date of order, i.e., 04.02.2013 gets adjusted to the amount determined in the order dated 04.02.2013. The assessee has taken the plea that payments have been made on 13/03/2013 for the full amount of ₹ 1,50,529/- which is TDS outstanding as on 31/03/2005. The amount paid gets automatically adjusted to the amount determined as per the order passed u/s. 201(1) and 201(1A) of the I.T. Act. Therefore, there is no requirement of remitting the case of the file of the Assessing Officer. AY 2006-07 - Department itself has reduced the liability u/s. 201(1) & 201(1A) of the I.T. Act to ₹ 4,430/- for the AY 2006-07 from ₹ 13,019/- originally determined. No other contentions have been raised. Hence, the appeal of the assessee for the assessment year 2006-07 is dismissed. A.Y. 2007-08 - According to the assessee there is no TDS payment outstanding for the A.Y. 2007-08 as per the addendum to the auditor’s report dated 11/08/2008. It is to be noted that the assessee has filed rectification application before the Assessing Officer. It is for the assessee to pursue the rectification application filed before the Assessing Officer and prove its case that no TDS payment is outstanding as on 31/03/2007. Thus dismiss the appeal filed by the assessee
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