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2020 (8) TMI 665 - AT - Income TaxLevy of Interest u/s 201(1A) for late deposit of Tax Deducted at Source - cheque towards the amount of TDS was tendered by the assessee to the government bank within the stipulated time period OR not? - delay on the part of the bank or the clearing house in making the remittance - HELD THAT:- After going through the cited order of this Tribunal in Oil and Natural Gas Corporation Ltd. V/s DCIT [2018 (12) TMI 286 - ITAT MUMBAI] we find that identical factual matrix as well as controversy has been dealt by the Tribunal and ultimately the issue has been decided in assessee’s favour as held as the assessee had admittedly tendered the cheque with the bank well within the stipulated 'due date', therefore, it cannot be held as being in default for the delay on the part of the bank or the clearing house in making the remittance of the said amount to the Government Account. Circular No. 261, dated 08/08/1979 issued by the CBDT, unless withdrawn or amended, would hold the ground and would be binding on the revenue. Payment would be deemed to have been made on the date the cheque was handed over to the banker and the date of payment was to be taken as the date of presentation of the cheques by the assessee. It also supports the proposition that the payment would relate back to the date of presentation of cheque unless the cheque is dishonored. The binding decisions cited by the assessee before Ld. CIT(A) also supports the said proposition. Similar view has been taken in ITO V/s Broadcom Communication Technology Pvt. Ltd. 2015 (10) TMI 2295 - ITAT BANGALORE]. No contrary decision is on record. Respectfully following the ratio of all these decisions, we hold that payment of TDS by the assessee would relate back to the date of presentation of cheques by the assessee to the banker. Accordingly, TDS-CPC, Ghaziabad is directed to revise the aforesaid intimation by taking the date of tender of cheques by the assessee as the actual date of payment and re-compute interest payable by the assessee, if any. The interest demand u/s 220(2) being consequential in nature, may also be recomputed. Resultantly, the appeal stands allowed to the extent indicated in the order.
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