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2016 (1) TMI 618 - ITAT JAIPUR

2016 (1) TMI 618 - ITAT JAIPUR - TMI - 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 coo .....

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i Raj Mehra, JCIT-. DR ORDER Per: R P Tolani: The assessee has filed an appeal against the order of the ld. CIT(A)III, Jaipur dated 10-09-2013 for the assessment year 2008-09 raising therein sole ground as under:-. "1. The ld. CIT(A) has wrongly confirmed the findings of AO for charging OF interest u/s 201(1)/ 201(1A) of the I T Act, of ₹ 2,37,930/- for alleged to be late depositing the TDS". 2.1 Ld. Counsel for the assessee contends that ld. CIT(A) has failed to appreciate the f .....

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ed that such demand has been raised by the AO for late deposit of TDS amounting to ₹ 79,31,000/- alleged to be paid on 02-06-2008 instead of 31-05-2008. It is stated that while raising such demand, no show cause notice was issued and that the assessee has filed an application u/s 154 of the Act against such order of the AO which is still pending. It was further submitted that the assessee made payment of ₹ 79,31,000/- through cheque No. 725829 drawn on Andhra Bank, Ashok Marg, Jaipur .....

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ed in the account of assessee on 31-05-2008. 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 Somasund .....

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is honoured on presentation, the payment is deemed to have been made on the date on which it was handed over to the Government bankers. The need to indicate on the challan the date of tender of the cheque/draft with the authorised public sector bank, was duly taken notice of by the Central Board of Direct Taxes and at the request of the Board, the Reserve Bank issued instructions to all the authorised public sector banks in November 1977 stipulating that the receiving branch should brand either .....

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uot; 2. Apart from the above procedure, the Central Board of Direct Taxes has revised the proformae of the various challans and new challan forms with colour bands are being progressively used to replace the existing ones. The new challans for the payment of self-assessment tax have already been introduced from April 1, 1979 and it will be noticed therefrom that the counterfoils of the challans meant both for the Income-tax Officer and the taxpayer contain separate columns for recording the date .....

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ls under the purview of this circular as 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 .....

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