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M/s NHAI Versus ACIT, (TDS) , SILIGURI

2016 (8) TMI 550 - ITAT KOLKATA

Interest on account of late deposit of TDS u/s. 201(1)/201(1A) - Held that:- In the instant case, assessee has deposited the TDS amount on or before 7th day of next month in each tax was deducted. 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. (1977 (11) TMI 45 - KERALA High Court ) to reach to the conclusion that the cases where the cheque had been deposited with the bank or before 7th .....

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ncome 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. For that the order is bad in law and is barred by limitation and is therefore liable to be quashed. 3. For that the Ld. .....

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acting on behalf of the Central Government as per the Notifications issued by the Central Government for collection of the Government dues. 6. For that on the facts and circumstances of the case and accepted principles of law the Ld. CIT(A) should have treated the payment tendered by the assessee as the date of payment of the taxes. 7. For that on the facts and circumstances of the case the order of the CIT(A) be modified and the assessee be given the relief prayed for. Shri S.M.Surana, L d Aut .....

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onomous 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 befo .....

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id to the Government account by the due date of deposit as per the relevant provisions of the Act. In the present case as the assessee has not actually paid TDS by the due date of deposit due to reasons of late clearing of cheques levy of interest u/s. 201(1A) of the Act n the assessee is fully justified. therefore, I am not inclined to interfere with the order of the Ld. ACIT (TDS), Siliguri u/s. 201(1)/201(1A) of the IT Act, 1961 for Form No.26Q for 3rd Quarter of Financial Year 2008-09. Being .....

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were deposited in the Axis Bank which is authorized bank for the 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 veheme .....

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ular No.261 dated August 8, 1979 (CBDT Circular) in line with the above rules, clarifying that in case of payment of cheque/draft, if honored, the date of payment would relate back to the date of handing over of cheque/draft to the government s bankers. However thereafter Central Government Account (Receipts and Payments) Rules 1983 Rules) were framed. These rules provide that date of payment for government dues tendered in form of cheque/draft shall be the date on which it was cleared and enter .....

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n the issue. The assessee, in this case, paid advance tax, for assessment year 1996-97, by depositing the cheques with the authorized bank within the due date. These cheques however, were realized after the due date. The assessing officer taking the actual date of realization of cheques, as the date 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 Inco .....

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ed the conflict between the Rules, Circular and the provisions of Negotiable Instruments Act, 1881. Other than upholding the binding nature of the Circular, the tribunal has observed that under the Negotiable Instruments Act, 1881 it has been held that once the cheque is encashed in ordinary course, it will discharge the drawer from payment, and thus there exists an apparent conflict between interpretation of Negotiable Instrument Act, 1881 and the Rules which have been framed by executive autho .....

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