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2016 (1) TMI 618

Charging of interest u/s 201(1)/ 201(1A) - late depositing the TDS - Held that:- It emerges from the record that assessee presented the requisite challan and cheque in favour of I T Department with SBBJ on 31-5-2008. Assessee has control over presentation of cheque and not on the subsequent internal procedure of banks. The CBDT circular no. 261 dated 8-8-1979 which is binding on the lower IT Authorities is clearly applicable to assessee case. Beside the coordinate Delhi ITAT judgment in the case .....

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en cheque no. 725829 of Andhra Bank, Jaipur of ₹ 79,31,000/- to collecting bank SBBJ, SMS Highway, Jaipur and same was debited by assessee's bank on 31-05-2008 in Govt. a/c but due to Sunday on 1-06-2008, the collecting bank SBBJ affixed seal in challan 2-06-2008. Thus payment was in time and no default was on the part of the assessee. Thus charging of interest was not justified. 2.2 During the course of appellate proceedings, the assessee submitted that such demand has been raised by .....

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2008. It was accordingly contended that the assessee has deposited collected TDS in time but the collecting bank affixed the seal in challan of dated 2-06-2008 because 01-06-2008 was Sunday and that the payment was made in stipulated time. It was accordingly claimed that there was no delay in deposit of the TDS and interest u/s 201(1A) has wrongly been charged. The assessee also placed reliance on the following case laws:- (i) K. Saraswatty vs. PSS Somasunderam Chettial (1989) 4SCC 527 (ii) CIT .....

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the challan is tendered over the counter, or a date stamped with provision for two dates, i.e., the date of tender and the date of the realisation of the cheque. The specimen of the date stamp is as under: "Date of tender.............................. Received payment Rs. ........................... Rupees....................................... Date of realisation.......................... For.................................Bank Authorised Signatory" 2. Apart from the above procedure, .....

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s the challan and cheque in favour of I T Department was tendered with SBBJ and debited to it's a/c. Consequently impugned interest charged u/s 201(1)/ 201(1A) is unjustified and deserves to be deleted. Further reliance is placed on Delhi ITAT judgment dated 10-09-2015 in the case of Sandip Bhagat vs. ACIT (ITA Nos. 6264, 6265 & 6266/Del/.2013) wherein it has been held as under:- "13. Thus the Hon'ble High Court of Madras has held that date of tending of cheque should be taken a .....

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int. 15. In the result, the appeal of the assessee is allowed." 2.5 Ld. DR supported the order of lower authorities. 2.6 I have considered the rival contentions and perused the material available on record. It emerges from the record that assessee presented the requisite challan and cheque in favour of I T Department with SBBJ on 31-5-2008. Assessee has control over presentation of cheque and not on the subsequent internal procedure of banks. The CBDT circular mentioned above which is bindi .....

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