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TMI Blog2018 (12) TMI 1388X X X X Extracts X X X X X X X X Extracts X X X X ..... back with date of online payment i.e. 07.07.2014 and not 08.07.2014, as online payment is on better footing than payment made by cheque as has been discussed by Hon’ble Apex Court in K. Saraswathy vs. P.S.S. Somasundaram Chettiar [1989 (5) TMI 318 - SUPREME COURT] So, following the decision of K. Saraswathy vs. P.S.S. Somasundaram Chettiar (supra) as well as P.L. Haulwel Trailers Ltd. vs. DCIT [2006 (1) TMI 213 - ITAT MADRAS-B], we are of the considered view that the assessee has made payment of TDS for the quarter ending on the due date and no interest is to be charged. Consequently, ground no.1 of AY 2015-16 is determined in favour of the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... djudication of the controversy at hand are : In Assessment Year 2008-09, the assessee deducted due tax for the quarter ending 30.06.2007 and remitted the same through banking channel by depositing a cheque on 07.07.2007 which was cleared in the normal banking channel on 10.07.2007 as against the due date of tax as 07.07.2007. Consequently, Assessing Officer raised a demand of interest for two months amounting to ₹ 35,530/- by treating the payment date as 10.07.2007 instead of 07.07.2007. 3. Similarly, in AY 2015-16, AO after noticing that as against the due date of depositing of tax as 07.07.2014, the Department received the payment on 08.07.2014 and thereby charged the interest as per section 201(1A) of the Income-tax Act, 1961 (for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case cited as DIT (Exemption) vs. Raunaq Education Foundation (2013) 350 ITR 420 reached to the conclusion that when the cheques issued have not been dishonoured the payment is to relate back to the date of receipt of the cheuqe. Consequently, following the decision rendered by the coordinate Bench of the Tribunal in case cited as Sandip Bhagat vs. ACIT (supra) which is based upon the decision rendered by Hon'ble Apex Court in DIT (Exemption) vs. Raunaq Education Foundation (supra), we are of the considered view that when the assessee has deposited the cheque on account of TDS on 07.07.2007 and undisputedly, sufficient funds were there in its account, the payment has to relate back to the date of presentation of the cheque and not to the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hy vs. P.S.S. Somasundaram Chettiar - (1989) 4 SCC 587 wherein it is held that payment by cheque should be taken as due payment if the cheque is subsequently encashed in the ordinary course. In the instant case, undisputedly, the assessee has made online payment of TDS due for the quarter ending 30.06.2014 on 07.07.2014 which was treated having been paid on 08.07.2014, the date of debiting the said amount from the account of the assessee. 12. When the assessee has made payment of TDS on 07.07.2014 by way of online payment and the same was debited from his account on 07.07.2014, the same is to relate back with date of online payment i.e. 07.07.2014 and not 08.07.2014, as online payment is on better footing than payment made by cheque as has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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