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TMI Blog2012 (7) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... assessees are societies and do not fall in Government Department category and it was also explained that as per the Govt. Scheme, the assessee is developing roads and the entire amount is given by the Central Government through the authorized banks. Therefore, there was no mala fide intention of not depositing the tax deducted at source within time. The assessee tried to deposit the amount of tax deducted within the prescribed limit of 7 days and cheques were deposited in the drop box, but due to delay in clearing there was delay in depositing the tax deducted at source. It was further submitted that there is not much delay in depositing the TDS as is noted by the AO. The assessee prepared a chart of every month along with due date of depositing of tax and actual amounts of deposits and the delay in making the deposits. The chart of the assessee is reproduced at page 3 of the appellate order in which the assessee highlighted that the delay is from one day to 12 days at the most, which was mainly on account of clearing time taken of cheques and the government holidays etc. It was submitted that the AO was not justified in taking the delay in depositing the tax deducted at source f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not discussed this issue in the appellate order. In principle, he has admitted that the assessee is in default of payment of taxes within the time as per law, but submitted that due to clearing time of cheques and government holidays, there was delay in deposit of TDS. Therefore, the assessee is not liable for excessive interest and recalculation of charging of interest is necessary and the ld. CIT(A) has not given any finding on the same. He has filed application for admission of additional ground in both the cases, which reads as under : "That no interest is chargeable on the amount (payment of TDS) for which the cheques were delivered to the Banking Authority within due time, which were realized by the bank authorities after due date, date of presentation of cheque is to be considered as date of payment of the amount, as held by Hon'ble Supreme court in the case of CIT vs. Ogale Glass Works Ltd., 25 ITR 529 and also clarified in rule 80 treasury rule." 3.1 The ld. counsel for the assessee relied upon the following decisions : (i). The decision of Hon'ble Supreme Court in the case of CIT vs. Ogale Glass Works Ltd., 25 ITR 529 in which it was held - "Assessee having requeste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atement in accordance with the provisions of sub-section (3) of section 200:] [Provided that in case any person, including the principal officer of a company fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a resident or on the sum credited to the account of a resident but is not deemed to be an assessee in default under the first proviso of subsection (1), the interest under clause (i) shall be payable from the date on which such tax was deductible to the date of furnishing of return of income by such resident.] 5.2 Section 200 of the IT Act provides as under : "200. (1) Any person deducting any sum in accordance with [the foregoing provisions of this Chapter] shall pay within the prescribed time, the sum so deducted to the credit of the Central Government or as the Board directs. (2) Any person being an employer, referred to in sub-section (1A) of section 192 shall pay, within the prescribed time, the tax to the credit of the Central Government or as the Board directs.] (3) Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son by whatever name called to whom the deductor reports the tax so deducted and who is responsible for crediting such sum to the credit of the Central Government, shall- (a) submit a statement in Form No. 24G within ten days from the end of the month to the agency authorised by the Director General of Income-tax (Systems) in respect of tax deducted by the deductors and reported to him for that month; and (b) intimate the number (hereinafter referred to as the Book Identification Number) generated by the agency to each of the deductors in respect of whom the sum deducted has been credited. (5) For the purpose of sub-rule (4), the Director General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data, and shall also be responsible for the day-to-day administration in relation to furnishing the information in the manner so specified. (6)(i) Where tax has been deposited accompanied by an income-tax challan, the amount of tax so deducted or collected shall be deposited to the credit of the Central Government by remitting it within the time specified in clause (b) of sub-rule (1) or in sub-rule (2) or in sub- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the IT Rules noted above, also provides the modes of payment of tax deducted with the provisions of Chapter XVII by paying the amount of tax to the credit of the Central Government within the time prescribed. The cumulative effect of all the above provisions and Rules clearly provide that the assessee has to deposit the tax with the government of India of the amount deducted at source and such tax shall be deemed to be paid to the Government when actual payment of tax has been brought to the Government by crediting the amount of taxes to the Central Government. The word "credit" and "actual amount paid to the Government of India" as prescribed in the above provision clearly denotes that the payment would be treated as made to the Government when the amount is actually credited and actually paid to the Government of India. Since the assessee has not deposited the amount of tax within the prescribed time, therefore, the assessee was liable for interest as per the above provisions. The time taken for clearing of cheques and government holidays and reasonable cause etc. are not the reasons, which could be considered while levying the interest against the assessee. Such reasons are ..... 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