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TMI Blog2017 (8) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... e General Clauses Act and is equally applicable to deposit of TDS where on the due date of deposit, the bank is closed and the taxes are deposited on the next working day. We are cognisance of the fact that the period under consideration relates to period where internet banking and e-deposit of taxes were not in vogue. In light of above, there is no default on the part of the assessee and interest u/s 201(1)(a) is not leviable in the instant case - Decided in favour of assessee. - ITA No. 494/JP/16 - - - Dated:- 3-8-2017 - SHRI KUL BHARAT, JM AND SHRI VIKRAM SINGH YADAV, AM For The Assessee : Shri Sunil Porwal For The Revenue : Shri Verinder Mehta and Shri R.A.Verma (Addl.CIT) ORDER PER SHRI VIKRAM SINGH YADAV, A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited by the assessee on 08.08.2009 in place of due date which was 07.08.2009 and interest liability has been determined on late payment of TDS u/s 201(1A) @ 1.5%. Being aggrieved, the assessee carried the matter in appeal who has confirmed the interest demand. 3. The relevant findings of the ld. CIT(A) which are under challenge before us are reproduced as under:- 4.0 I have gone through the statement of facts filed by the appellant carefully. The appellant has contended that he could not deposit the fact on 07.08.2009 (which was the due date), as there was a strike of the bank on 07.08.2009, therefore, the delay in depositing the TDS may be condoned. In support of his argument, the appellant has relied on the Circular no. 639 date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trike and hence not accepted our request to delete our day late deposit interest ₹ 1,33,614/-. 5. In support, reliance was placed on decision reported in 157ITD 415 in the case of Damodar Valley Corporation V/s ACIT wherein it was held as under: if the last day for payment of any installments of advance tax is a day on which the receiving bank is closed, the assessee can make payment on the next immediately following working day, and in such cases, the mandatory interest leviable under 234B and 234C of the Income Tax Act, 1961 would not be charged. Following the aforesaid Circular No. 676, dated 14.01.1994 and section 10 of General Clauses Act, it was concluded that assessee has not committed any default in pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re always binding on all subordinates /or offices of Income Tax Deptt. In view of any circular as well as sec. 10 of General Clauses Act, there is no any default committed by us in payment of TDS in time. The delay of one day is only on account of Bank holiday as admitted in Bank certificate produced before Appellate Authority and there is no delay on our part. In such cases mandatory interest leviable would not be charged as per this circular also. 7. The ld. DR vehemently argued the matter and supported the order of the lower authorities. He submitted that there is no provision for condonation of delay and interest u/s 201(IA) is mandatory in nature 8. Clause 10 of the General Clauses Act reads as under:- ( 1) Where, by any ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act or proceeding is directed or allowed to be done or taken in any Court or office on a certain day or within a prescribed period, then, if the Court or office (in the present case the bank which is authorised to receive payment of advance tax from the assessee) is closed on that day or on the last day of the prescribed period, the Act or proceeding shall be considered as done or taken in due time after it is done or taken on the next day, afterwards, on which the Court or office ( or the bank) is open. In view of this provision, it is hereby clarified that if the last day for payment of any instalments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following workin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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