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TMI Blog2015 (9) TMI 904X X X X Extracts X X X X X X X X Extracts X X X X ..... parate orders of the Commissioner of Income-Tax( Appeals)- XXVIII, New Delhi dated 16.9.2013 in relation to assessment year 2009-10, 2010-11 and 2011-12. The main grievance raised in appeals is in respect of charging of interest u/s 234C of the Income Tax Act, 1961 (in short the Act ), the quantum of which charged in different years is as under:- ITA No. Assessment Year Amount of interest charged u/s 234C of the Act 6224/Del/2013 2009-10 Rs.25,512/- 6265/Del/2013 2010-11 Rs.27,154/- 6266/Del/2013 2011-12 Rs.25,218/- 2. In all the appeals grounds of appeal raised are identical. For the sake of convenience, the appeal in ITA No.6264/Del/2013 is taken up as lead case and decided accordingly. ITA No.6264/Del/2013 The grounds raised in the appeal are reproduced as under:- 1. The order passed by the Learned Commissioner of Income Tax (Appeals) is bad on facts and in law. 2. The Learned Commissioner of Income Tax (Appeals) has erred in noting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering of cheques in designated Banks. While computing the interest u/s 234C of the Act, the AO took the date of clearing of cheque by the bank as the date of payment of advance tax as against the date of tendering of cheque taken by the assessee. Further, while disposing off the rectification application of the assessee u/s 154 of the Act, the CPC observed as under:- VARIATION DUE TO INTEREST: THE ASSESSEE IS ADVISED TO USE THE SOFTWARE UTILITY AVAILABLE ON THE WEBSITE http:/www.incometaxindiaefiling.gov.in FOR ENTERING AND UPLOADING THE ONLINE RECTIFICATION APPLICATION. 6. Aggrieved, the assessee filed an appeal before the ld CIT(A) raising the following grounds:- a) Whether while framing the intimation u/s 143(1) the above said circular is being followed by CPC; b) Whether if the glaring mistake is pointed out by the assessee by filing rectification online any steps are being taken by the CPC by either transferring it to the Jurisdictional ITO or asking for further information before rejecting the application u/s 154 of the Income Tax Act, by critically nothing THE ASSESSEE IS ADVISED TO USE THE SOFTWARE UTILITY AVAILABLE ON THE WEBSITE http://www.incometax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thereafter, Central Government Account (Receipts and Payments) Rules 1983 (1983 Rules) were framed. These rules provide that the date of payment of government dues tendered in form of cheque/draft shall be the date on which it was cleared and entered in the receipt scroll; However a High Powered Committee (HPC) was constituted by Reserve Bank for setting up OLTAS in January 2003. The HPC set up a Sub-Committee to suggest the Accounting Procedure for Online Tax Accounting System. The Accounting procedure duly approved by CGA and CAG was introduced for OLTAS w.e.f June 01, 2004. The new accounting procedure was forwarded to all agency banks on April 16, 2004. The salient features of the new accounting procedure are the introduction of a single copy Challan with tear-off taxpayer's counterfoil, branding of acknowledgement stamp with unique serial number known as Challan Identification Number (CIN) on the single copy Challan and on taxpayer's counterfoil. Tax payers are now able to view the tax paid by them by logging. Further, the new file structure required by Income Tax Department was also forwarded to Agency banks for developing suitable software for the OLTAS. Under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew of the decision of the Supreme Court in CITv. Ogale Glass Works Ltd. 19541 25 1TR 529, wherein it is held as under: 11. ...... When it is said that a payment by negotiable instrument is a conditional payment what is meant is that such payment is subject to a condition subsequent that if the negotiable instrument is dishonoured on presentation the creditor may consider it as waste paper and resort to his original demand: (Stedman v. Gooch, ((1791) 1 Esp 5). It is said in Benjamin on Sale, 8th Edn. p. 788: The payment takes effect from the delivery of the bill, but is defeated by the happening of the condition i.e. non-payment at maturity. In Byles on Bills, 20th Edn., p. 23 the position is summarized pithily as follows: 'A cheque, unless dishonoured, is payment.' To the same effect are the passages to be found in Hart on Banking, 4th Edn. Vol. I, p. 342. In Felix Hadley Co. v. Hadley, [1898] 2 Chd. 680 Byrne, J. expressed the same idea in the following passage in his judgment at p. 682: 'In this case I think what took place amounted to a conditional payment of the debt; the condition being that the cheque or bill should be duly met or honoure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of DIT( Exemption) v. Raunaq Education Foundation (2013) 350 ITR 420. Coming to the facts of the case in hand, cheques issued have not been dishonored and so the facts of the case are exactly identical to the case cited above, and therefore, respectfully following the judgment of the Hon ble High Court of Madras in the case of CIT Vs. REPCO Home Finance Ltd (supra) and DIT( Exemption) v. Raunaq Education Foundation , we hold that interest u/s 234C of the Act should be computed from the date of presentation of the cheque of tax payment. We direct the Assessing Officer to compute the interest u/s 234C of the Act, accordingly, 14. Thus, the ground No. 4 of the assessee stands allowed. As the ground No.4 is allowed, the ground Nos.2 and 3 are rendered merely academic in nature and hence do not require adjudication at this point. 15. In the result the appeal of the assessee is allowed. ITA No.6265/Del/2013 and ITA No.6266/Del/2013 16. As the facts of the years in consideration are exactly identical to the appeal decided in ITA No.6264/Del/2013, following the decision in said appeal, both the appeals of the assessee are allowed. Order Pronounced in the Court on 10/09/2015. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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