TMI Blog2016 (8) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... l/2013 - - - Dated:- 30-6-2016 - Shri Waseem Ahmed, Accountant Member and Shri S.S.Viswanethra Ravi, Judicial Member For The Appellant : Appellant Shri S.M.Surana, Advocate For The Respondent : Shri Saurabh Kumar, JCIT-DR ORDER PER Waseem Ahmed, Accountant Member:- This appeal by the assessee is against the order of Commissioner of Income Tax (Appeals), Siliguri dated 18.06.2013. Assessment was framed by ACIT(TDS), Siliguri u/s 201(1)/201(1A) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) vide his order dated 26.03.2013 for assessment year 2009-10.The grounds raised by assessee per its appeal are as under:- 1. For that the order of the Ld. CIT(A) is arbitrary, illegal and bad in law. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... late deposit of Tax Deposited at Source (TDS for short) amount u/s. 201(1)/201(1A) of the Act. 3. Facts in brief are that assessee in the present case is an Autonomous Body under the Ministry of Road Transport Highways, Govt. of India and engaged in the business of construction of National Highway. During the course of assessment proceedings, Assessing Officer observed that there was a delay in making the payment of TDS amount as stipulated u/s 201 of the Act and details of TDS payment as under:- In view of above, AO has levied the interest of ₹1,17,310/- of the Act late deposit of TDS amount. 4. Aggrieved, assessee preferred an appeal before L d CIT(A) who confirmed the action of AO by having reliance in the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e collection of government taxes. In terms of Circular No. 232 [F.No.385/79/77-IT(B)], dated 26-11-1997. There was no delay on the part of assessee for making the payment of TDS on its due date. However, the credit was given by the bank after the due date and that time was taken by bank in its clearing processing being no fault on the part of assessee. Therefore, the assessee should not be penalized. On the other hand, L d DR vehemently relied on the orders of Authorities Below. 6. We have heard the rival contentions and perused the materials available on record. From the foregoing discussion, we find that interest was imposed by AO on account of late deposit of tax and same was confirmed by L d CIT(A) relying on the order of ITAT Agr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of payment, levied interest for deferment of advance tax u/s. 234C of the Income-Tax Act 1961.The Tribunal observed that CBDT Circular, which was issued by the apex administrative body under the Income-tax Act, 1961, was not withdrawn after the Rules were framed, i.e. it still holds good and would hence be binding on the Income-Tax authorities in preferences to any other executive instruction issued by any other authority. The tribunal thus held that, as cheques were presented and deposited with the authorized banker within the due date and encashed subsequently, date of tender of the cheque should be taken as the date of payment. While rendering its decision, the tribunal has duly considered the conflict between the Rules, Circular and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is no such clear provision than for government due Central Government Account (Receipts and Payments) Rules 1983 will apply according to which the date of payment of government dues tendered in form of cheque/draft shall be the date on which it was cleared and entered in the receipt scroll; In the instant case, assessee has deposited the TDS amount on or before 7th day of next month in each tax was deducted. However, in some cases, tax was deposited late i.e. after due date. In the similar facts and circumstances, various courts have decided the issue in favour of assessee in the case of CIT v. Nenmony Investments Agencies Ltd. (1978) 113 ITR 354, relying on the above judgment of Hon'ble Supreme Court we reach to the conclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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