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TMI Blog2010 (6) TMI 843X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture and marketing of x-ray medical equipments and other allied activities. The assessee had filed its return of income for the concerned asst. year on 29.10.2005 declaring a total income of ₹ 56,685,490/-. Intimation u/s 143(1) was served on the assessee levying interest u/s 234C of the Act amounting to ₹ 2,77,892/-. 2.1 An application u/s 154 was filed seeking rectification for the amount levied u/s 234C. The Assessing Officer, under 143(1) proceedings, had calculated interest u/s 234C from the date of realization of cheque whereas according to the assessee, tendering date of the instrument is to be reckoned while calculating interest u/s 234C of the Act. The Assessing Officer passed an order u/s 154 of the Act upho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subject i.e. Circular No.261 dt.08.08.79 vide 120 ITR St 7 which speaks that date of handing over be counted as the date of presentation and realization of cheque amount if not dishonoured will not help the appellant because the Specific Act i.e. Receipts and Payment Act, 1983 is subsequent to such circular". 4. The learned AR submitted that all the cheques for advance tax were tendered within the due dates of payment thereof. It was also submitted that the cheques were realized subsequently and the same were not dishonored. The learned AR also relied on the judgements rendered by various courts and Tribunal for the proposition that date of tendering of instrument is to be reckoned and not the date of realization. Following are the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has been held that upon tendering of a cheque, if it is not dishonoured, it shall be deemed that payment has been made on the date when it was handed over to the Government's banker. The relevant finding of the Hon'ble High Court reads as follows:- "A harmonious reading of these provisions makes it clear that Government dues can be presented in the form of cheque into the accredited bank. Upon tendering of a cheque, if it is not dishonored later, it shall be deemed that payment has been made on the date when it was handed over to the Government's bankers. The Hon'ble Supreme Court in the case of K Saraswatty v P S S Somasundaram Chettiar (1989) 4 SCC 527 while dealing with a case u/s 10 and 82 of the Negotiable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to the assessee as contemplated u/s 214 of the Act. 6.4 In the appeal before the Appellate Assistant Commissioner, the assessee submitted that the Income Tax Officer should have determined and paid interest to the assessee in respect of the installment of advance tax paid by way of cheque on September 13, 1974. The Appellate Assistant Commissioner, however, held that since the assessee ought to have paid the installment on September 15, 1974, it was not entitled to any interest u/s 214. According to the Appellate Assistant Commissioner, the date of handing over the cheque to the Income Tax Officer was not relevant for the purpose of granting interest u/s 214, but the relevant date was the date of encashment viz. September 25, 1974. So ..... X X X X Extracts X X X X X X X X Extracts X X X X
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