TMI Blog2020 (8) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... heque was handed over to the banker and the date of payment was to be taken as the date of presentation of the cheques by the assessee. It also supports the proposition that the payment would relate back to the date of presentation of cheque unless the cheque is dishonored. The binding decisions cited by the assessee before Ld. CIT(A) also supports the said proposition. Similar view has been taken in ITO V/s Broadcom Communication Technology Pvt. Ltd. 2015 (10) TMI 2295 - ITAT BANGALORE] . No contrary decision is on record. Respectfully following the ratio of all these decisions, we hold that payment of TDS by the assessee would relate back to the date of presentation of cheques by the assessee to the banker. Accordingly, TDS-CPC, Ghaziabad is directed to revise the aforesaid intimation by taking the date of tender of cheques by the assessee as the actual date of payment and re-compute interest payable by the assessee, if any. The interest demand u/s 220(2) being consequential in nature, may also be recomputed. Resultantly, the appeal stands allowed to the extent indicated in the order. - I.T.A. No.2153 to 2156/Mum/2018 - - - Dated:- 21-8-2020 - Shri C.N. Prasad, JM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned CIT(A) erred in confirming the consequential levy of interest of ₹ 1,68,388 under section 220(2) of the Act. 2. Levy of Interest for two months 2.1 Without prejudice to the above the learned CIT(A) erred in confirming of action levy of interest under section 201(1A) of the act for two months. 2.2 Without prejudice to the above the learned CIT(A) erred in not appreciating that as the period of delay in payment of TDS is less than 30 days interest can be levied only for one month and not for two months. As evident, the sole subject matter of appeal is levy of interest on alleged late payment of tax deducted at source (TDS) by the assessee. 3.1 Facts on record would reveal that the assessee received an intimation u/s 154 of Act, 1961, Communication Ref. No. TDS/0708/24Q/D/100015357388 from TDS-CPC, Vaishali, Ghaziabad vide order dated 20/06/2015. This intimation processed the correction TDS statement in Form 24Q for Q-1 of financial year 2007-08 filed by the assessee on 18/06/2015. In the said intimation, the assessee has been charged with interest of ₹ 42,09,766/- on account of late payment of tax u/s 201(1A) and another interest of ₹ 1,68,388/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e were held to be not applicable. The assessee s reliance on CBDT Circular No. 261 dated 08/08/1979 was rejected in view of the fact that the said circular was based on Rule 80 of the compilation of the treasury rules which became redundant and were replaced by Central Government (receipt and payment) Rules, 1983. As per Rule 20 of new rules, the date of receipt of government revenue would be the date on which cheque / draft was cleared and entered in the receipt scroll. Since the basis on which old circular was framed no longer existed, the continuation of the said circular would fall. Regarding assessee s reliance on Circular No. 676 dated 14/01/1994, it was held that the same was in the context of Section 234B and Section 234C of the Act and therefore, would not apply. Finally, it was held that the tax shall be deemed to have been paid to the government when the actual payment of tax has been brought to the credit of government. The time taken for clearing of cheques was not to be considered while levying interest u/s 201(1A). Accordingly the levy of interest was held to be justified. Aggrieved as aforesaid, the assessee is in further appeal before us. 4. The Ld. Authorize ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the Treasury Rules, if a cheque or draft tendered in payment of Government dues and accepted under the provisions of Rule 79 is honoured on presentation, the payment is deemed to have been made on the date on which it was handed over to the Government banker.... On a perusal of the order of the CIT(A), we find that he had declined to accept the aforesaid CBDT Circular No. 261, dated 08.08.1979, for the reason that as per him the Central Treasury Rules (Old rules) had been substituted by the Central Government Account (Receipts and Payments) Rules, 1983 which therein governed the provisions of payment of government dues. The CIT(A) drawing support from the Central Government Account (Receipts and Payments) Rules, 1983, had therein concluded that as per the amended rules the government dues tendered in form of a cheque or draft shall be deemed to have been paid on the date on which it is cleared and entered in the receipt of scroll. Admittedly, we are in agreement with the view taken by the CIT(A) that the Central Treasury Rules (Old Rules) had been substituted by the Central Government Account (receipts and payments) Rules, 1983 , as per which the date on which a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue date', therefore, the date of payment was to be taken as the date of presentation of the cheques by the assessee. The Tribunal had arrived at the aforesaid view after considering viz. (i) CBDT Circular No. 261, dated 08.08.1979; (ii) Central Government Account (Receipts Payments) Rules, 1983; and (iii) the judgment of the Hon'ble Supreme Court in the case of K. Kaplana Saraswathi ( supra ). Still further, the ITAT, Bangalore in ITO v. Bradcom Communication Technologies (P) Ltd. [ITA No. 895 900/2014] had observed that where the assessee had made the payment before the 'due date', it was thereafter beyond its control to ensure the transmission of the amount to the government account within the stipulated 'due date'. On the basis of the aforesaid observations, it was held by the Tribunal that the assessee could not be faulted for delay on the part of the bank or the clearing house, whatever may be the rules governing receipts and payments into the Central Government Account. We find that a similar view was also taken by the ITAT, Kolkata in NHAI, PIU Siliguri v. ACIT [ITA No. 2296/Kol/2013]. In the said case though the assessee had deposited t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on is on record. Respectfully following the ratio of all these decisions, we hold that payment of TDS by the assessee would relate back to the date of presentation of cheques by the assessee to the banker. Accordingly, TDS-CPC, Ghaziabad is directed to revise the aforesaid intimation by taking the date of tender of cheques by the assessee as the actual date of payment and re-compute interest payable by the assessee, if any. The interest demand u/s 220(2) being consequential in nature, may also be recomputed. Resultantly, the appeal stands allowed to the extent indicated in the order. ITA No.2156/Mum/2018, Quarter-2 of Financial Year 2007-08 6. Facts are pari-materia the same in this appeal. The assessee has been saddled with interest u/s 201(1A) for ₹ 47,47,081/- for alleged late payment of TDS vide intimation u/s 200A of the Income Tax Act, 1961 dated 20/06/2015, Communication Reference No. TDS/0708/24Q/D/100015357410. The Ld. CIT(A) has upheld the levy of interest on similar reasoning vide order dated 31/01/2018. Aggrieved, the assessee is in further appeal before us with similar grounds. Facts being identical as in ITA No. 2155/Mum/2018, our adjudication as well ..... X X X X Extracts X X X X X X X X Extracts X X X X
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