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Ajmer Vidyut Vitran Nigam Ltd. Versus The DCIT (TDS) , CPC, Ghaziabad

Late payment of TDS u/s 201(1A) - Provisions for condone the delay in payment - delay for cause of bank Strike - reasonable cause of delay - Held that:- It is not in dispute that the taxes deducted have been deposited with a delay of one day. It is also not in dispute that on the due date of deposit i.e, 7.8.2009, there was bank strike and an effective bank holiday and no taxes could have been deposited on the said date. - In the instant case, the bank was closed on 7.8.2009 on account of b .....

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n the part of the assessee and interest u/s 201(1)(a) is not leviable in the instant case - Decided in favour of assessee. - ITA No. 494/JP/16 - Dated:- 3-8-2017 - SHRI KUL BHARAT, JM AND SHRI VIKRAM SINGH YADAV, AM For The Assessee : Shri Sunil Porwal For The Revenue : Shri Verinder Mehta and Shri R.A.Verma (Addl.CIT) ORDER PER SHRI VIKRAM SINGH YADAV, A.M. This is an appeal filed by the assessee against the order of Ld. CIT(A), Ajmer dated 29.02.2016 for A.Y. 2010-11 wherein the assessee has t .....

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l Clause Act, 1897 the next working day should be treated as due date. The Board also has issued circular no 676 dt 14/01/1994 and 639 dated 13/11/1992 which is binding on department. 3. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in directing the AO to verify the rate of interest chargeable U/s 201(1A) of IT Act 1961 instead of dealing with the matter itself. 2. Briefly the facts of the case are that an intimation u/s 154 of the IT Act was .....

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aggrieved, the assessee carried the matter in appeal who has confirmed the interest demand. 3. The relevant findings of the ld. CIT(A) which are under challenge before us are reproduced as under:- 4.0 I have gone through the statement of facts filed by the appellant carefully. The appellant has contended that he could not deposit the fact on 07.08.2009 (which was the due date), as there was a strike of the bank on 07.08.2009, therefore, the delay in depositing the TDS may be condoned. In support .....

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er argument of the appellant that the period of delay is one month only and not two month and rate of interest applicable for the A.Y. 2010-11 was 1% whereas the interest has been charged by the DCIT CPC @ 1.5% are concerned, the assessee has not furnished any evidence to substantiate the facts narrated by him. Therefore, the AO is directed to verify the contention of the appellant regarding the period of delay and rate of interest from the record and rectify the mistake, if any, after verificat .....

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ndone the delay in payment even due to reasonable cause of bank Strike and hence not accepted our request to delete our day late deposit interest ₹ 1,33,614/-. 5. In support, reliance was placed on decision reported in 157ITD 415 in the case of Damodar Valley Corporation V/s ACIT wherein it was held as under: if the last day for payment of any installments of advance tax is a day on which the receiving bank is closed, the assessee can make payment on the next immediately following working .....

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attending the staff due to strike and we have deposited the sums on next working day i.e. 08.08.2009 as admitted by both the lower authorities and hence the deposit date should be considered as deposited in time limit and no interest should have been charged by considering delay in deposit. The case is fully covered by our case. That there is also a case decided by Allahabad High Court in (2014) 304 ELT 652 (All.) in the case of Qurtzone shoe Component (India) Pvt.) Ltd. V/s Union of India-Held- .....

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be followed by all Courts as decided by Supreme Court in the case of M/s Suchitra components ltd. V/s Commissioner of Central Excise (2009) 20 VST 726(SC) (2008) 13 VST 151(SC). Even without prejudice to above the beneficial CBDT circular &/or instruments are always binding on all subordinates &/or offices of Income Tax Deptt. In view of any circular as well as sec. 10 of General Clauses Act, there is no any default committed by us in payment of TDS in time. The delay of one day is only .....

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y (Central Act) or regulation made after the commencement of this Act, any act or proceeding is directed to allowed to be done or taken in any Court or office on a certain day or within a prescribed period, then, if the Court or office is closed on that day or that day or the last day of the prescribed period, the Act or proceeding shall be considered as done or taken in due time if it is done or taken on the next day afterwards on which the Court or office is open. Provided that nothing is this .....

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s which are prescribed under section 211 of the Income-tax Act. In cases where the last date for making payment of such instalments ( i.e. 15th September, 15th December and 15th March) happens to be a holiday and the assessee pays the due amount of advance tax on the next working day. 2. The matter has been carefully considered by the Board and it is felt that in such cases section 10 of the General Clauses Act, 1897 will be applicable. This section lays down that where any Act or proceeding is .....

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this provision, it is hereby clarified that if the last day for payment of any instalments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961 would not be charged. 10. We have heard the rival contentions and perused the material available on record. It is not in dispute that the taxes deducted have .....

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