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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 ..... full facts and circumstances of the case. 2. That the learned CIT(Appeals) Ajmer erred on the facts that the assessee has deposit the TDS on 08/08/2009 next working day. The due date was 07/08/2009, the delay was due to strike of the bank on 06/08/2009 and 07/08/2009. As per the section 10 of general Clause Act, 1897 the next working day should be treated as due date. The Board also has issued circular no 676 dt 14/01/1994 and 639 dated 13/11/1992 which is binding on department. 3. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in directing the AO to verify the rate of interest chargeable U/s 201(1A) of IT Act 1961 instead of dealing with the matter itself." 2. Briefly the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be condoned is not acceptable. As far as the other argument of the appellant that the period of delay is one month only and not two month and rate of interest applicable for the A.Y. 2010-11 was 1% whereas the interest has been charged by the DCIT CPC @ 1.5% are concerned, the assessee has not furnished any evidence to substantiate the facts narrated by him. Therefore, the AO is directed to verify the contention of the appellant regarding the period of delay and rate of interest from the record and rectify the mistake, if any, after verification of the record." 4. During the course of hearing, the ld. AR submitted that the demand has been raised on account of interest on deposit of TDS for Rs. 66,92,054/- on 08.08.2009 as against due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eposited in time limit and no interest should have been charged by considering delay in deposit. The case is fully covered by our case. That there is also a case decided by Allahabad High Court in (2014) 304 ELT 652 (All.) in the case of Qurtzone shoe Component (India) Pvt.) Ltd. V/s Union of India-Held- 6. In support, reliance was also placed on CBDT circular no. 676 dated 14.01.1994 wherein it has clarified as under:- "That if the last day for payment of any installment of advance tax is a day on which the receiving bank is closed the assessee can make the payment as the next immediately following working day, and in such cases, the mandatory interest leviable u/s 234B and 234C income tax Act, 1961 would not be charged." As the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the Court or office is open. Provided that nothing is this section shall apply to any act or proceeding to which the (Indian Limitation Act, 1877(15 of 1877), applies. This section applies also to all (Central Acts) and Regulations made on or after the fourteenth day of January 1887." 9. CBDT circular no. 676 dated 14.01.1994 reads as under:- "1. Representations have been received by the Board seeking waiver of interest chargeable under sections 234B and 234C of the Income-tax Act, 1961 for default in payment of instalments of advance tax by the due dates which are prescribed under section 211 of the Income-tax Act. In cases where the last date for making payment of such instalments ( i.e. 15th September, 15th December and 15th M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxes could have been deposited on the said date. The CBDT has received similar representation in context of deposit of advance tax when the last date of deposit of installment of advance tax happens to be a holiday and taking into consideration the provisions of section 10 of the General Clauses Act, has clarified vide its circular no. 676 dated 14.1.1994 that "if the last day for payment of any installment of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable u/s 234B and 234C income tax Act, 1961 would not be charged." In the instant case, the bank was closed on 7.8.2009 on account of bank strike an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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