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2018 (12) TMI 1388 - AT - Income TaxLevy of interest u/s 201(1A) - Delay in depositing TDS to government - online payment - Held that - In the instant case, undisputedly, the assessee has made online payment of TDS due for the quarter ending 30.06.2014 on 07.07.2014 which was treated having been paid on 08.07.2014, the date of debiting the said amount from the account of the assessee. When the assessee has made payment of TDS on 07.07.2014 by way of online payment and the same was debited from his account on 07.07.2014, the same is to relate back with date of online payment i.e. 07.07.2014 and not 08.07.2014, as online payment is on better footing than payment made by cheque as has been discussed by Hon ble Apex Court in K. Saraswathy vs. P.S.S. Somasundaram Chettiar 1989 (5) TMI 318 - SUPREME COURT So, following the decision of K. Saraswathy vs. P.S.S. Somasundaram Chettiar (supra) as well as P.L. Haulwel Trailers Ltd. vs. DCIT 2006 (1) TMI 213 - ITAT MADRAS-B , we are of the considered view that the assessee has made payment of TDS for the quarter ending on the due date and no interest is to be charged. Consequently, ground no.1 of AY 2015-16 is determined in favour of the assessee.
Issues:
1. Levy of interest for delayed tax payment in Assessment Year 2008-09. 2. Levy of interest for delayed TDS payment in Assessment Year 2015-16. Analysis: 1. Levy of interest for delayed tax payment in Assessment Year 2008-09: In the case of Assessment Year 2008-09, the appellant sought to set aside the order passed by the Ld. CIT (Appeals) upholding the levy of interest for delayed tax payment. The Assessing Officer raised a demand of interest for two months due to the delay in payment by the assessee. However, the Tribunal ruled in favor of the assessee, stating that the date of depositing the cheque should be considered as the date of tax payment, not the date of its realization. The Tribunal relied on previous decisions and concluded that the payment should relate back to the date of cheque presentation. Therefore, no further interest was to be charged, and the ground was determined in favor of the assessee. 2. Levy of interest for delayed TDS payment in Assessment Year 2015-16: Regarding the Assessment Year 2015-16, the appellant challenged the interest charged for delayed TDS payment. The AO and CIT (A) had imposed interest due to the delay in crediting the amount to the state exchequer. The Tribunal, however, sided with the assessee, emphasizing that the online payment made on the due date should be considered as the date of payment, not the date of debiting the amount. Citing legal precedents, including a decision by the Hon'ble Supreme Court, the Tribunal concluded that the payment date should relate back to the date of online payment. As a result, the interest was not justified, and the ground was decided in favor of the assessee. In both cases, the Tribunal found in favor of the assessee, emphasizing the importance of considering the date of payment initiation rather than the date of realization. The decisions were based on legal principles and precedents, ensuring fair treatment in matters of interest levies for tax and TDS payments.
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