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2018 (12) TMI 286 - AT - Income TaxLevy of interest under Sec. 201(1A) - amount of TDS was deposited on 12.07.2007 i.e beyond the stipulated ‘due date‟ of 07.07.2007 - A.O. rightly levied interest for the delay involved under Sec. 201(1A) - Held that:- We are of the considered view that as the assessee had admittedly tendered the cheque with the bank i.e. State Bank of India, Branch: Bandra Kurla Complex, Mumbai 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. We thus in the backdrop of our aforesaid deliberations, not being able to persuade ourselves to subscribe to the view taken by the lower authorities that the assessee was to be treated as being in default for delay in deposit of the amount of TDS, thus set aside the order of the CIT(A) and delete the interest levied by the A.O under Sec. 201(1A) of the Act. Whether CIT(A) is right in law and the facts of the case in treating the assessee as being in default for delay in deposit of TDS, though the cheques towards the amount of TDS were tendered by the assessee with the government bank within the stipulated time period, had been deliberated upon and adjudicated by us while disposing off the appeal of the assessee for the ‘first quarter‟ for the year under consideration therefore, our order therein passed shall apply mutatis mutandis for disposing off the present appeal of the assessee for the ‘first quarter‟. Before parting, we may herein observe that as we have quashed the interest levied by the A.O under Sec. 201(1A), therefore, the consequential demand raised by the A.O towards additional late payment interest and Interest under Sec. 220(2) shall also stand vacated.
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