9911796707
TMI Blog2011 (3) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... DS), Lucknow issued a show cause notice u/s 201(1) and 201(1A) of the I.T. Act to the assessee by pointing out following short deductions on the basis of e-TDS return filed by the assessee: Short deduction u/s 194A Rs.40,266/- Short deduction u/s 194J Rs. 4,334/- Total Rs.44,600/- Interest on late payment Rs.2,15,750/- Total Rs.2,60,350/- 2.1 In response to the said notice the assessee submitted that no TDS was to be deducted on the interest payment of Rs.30,880/- to Hindustan Cooperative Bank. The said reply was found to be correct for the reason that the provisions of section 194A are not applicable on interest payment to bank on which Banking Regulation Act is applicable. The assessee pointed out to the DCIT (TDS) that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... challan vide which payment was made along with the letter of Union Bank of India dated 10/07/2010 addressed to the Branch Head that the assessee had deposited income tax of Rs.2,15,73,701/- and the same had been remitted to the Income Tax Department on 8th July 2010. It was also confirmed in the said letter that the payment was received by the pay order no. 831222 dated 04/07/2008 and collected through clearing on 07/07/2008. 3.1 The Learned CIT(A), after considering the submissions of the assessee, observed that the challan for the TDS with BSR Code No.029137 for Rs.2,15,73,701/- for the assessment year 2008-2009 for the payment made by bank bearing TAN LKNB05007C shows the date of payment as 8th July 2008. According to him there w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k of India, Chandganj, Lucknow which is authorized for the purpose of deposition of tax of Income-tax authorities. The said amount was collected from the assessee through banker clearing house on 7th July 2008 i.e. the due date for depositing the TDS in question. The said amount although was collected from the assessee on 07/07/2008, however, it was credited to the Central Government on 8th July 2008 instead of 7th July 2008, therefore, it is clear that there was no fault on behalf of the assessee because the amount was collected by the authorized bank on 7th July 2008 which was the due date for payment of TDS for the month of June 2008. In the present case, when the amount was collected from the assessee it was the duty of the collecting b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is settled legal position that in case of payment by cheque, the payment is deemed to have been made on the date of delivery of the cheque and not on the date of encashment when the cheque was honoured. Though the cheque was encashed on April 3, 1998, the payment must be deemed to have been made on March 30, 1998, when challan dated March 30, 1998, was submitted by the petitioner to the Department along with the cheque. Therefore, the payment of tax was within the period prescribed." 6.2 In the instant case also, the pay order was handed over by the assessee to the Government banker i.e. Union Bank of India, Chandganj, Lucknow on 4th July 2008 i.e. prior to the due date which was 7th July 2008. The said pay order was credited in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
