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TMI Blog2020 (1) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... on the income-tax authorities in preference to any other executive instruction issued by any other authorities. Therefore, it is very clear that even the Government has taken a decision with respect to the payment of the Government dues by cheque. The circular of Directorate of Service Tax clearly expresses the intention of the Government in treating the payments made by the individual assessee by cheque or bank draft. Central Government Account (Receipts and Payments) Rules, 1983 was framed by the executive authorities in exercise of their power under article 283(1) of the Constitution of India. Rule 20(1) of said Rules says that when the payment was made by cheque or draft, the payment shall be deemed to have been made on the date on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ques before the authorized banker for payment of advance tax as date of payment. The aforesaid decision will apply with much greater force in the present case as the payment in the present case is online and the credit to the Government s account is instant. The Central Government Account (Receipts and Payments) Rules, 1983 do not apply to payments online but are applicable to payments made by cheques and the date of payment when payments are made by Cheques. Even in such cases, the rule is that if the cheques are ultimately honored the date of handing over the cheque to the Government should be regarded as the date of payment. Therefore the aforesaid decision of ITAT Chennai Bench in the case of P L Haulwel Trailers Ltd. [ 2006 (1) TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee remitted tax in the Online Tax Accounting System (OLTAS). In the OLTAS, the date of remittance was shown as 8th / 9th of the succeeding month. It is also not disputed that the payment was made online by the assessee and the date of payment as per challan used by the assessee for making payment of TDS and the date as per the bank statement and the date as per the TRACES were 7th of the succeeding month. Since the date of remittance as per the OLTAS was after 7th of the next month, the AO charged interest under section 201(1)(1A) of the Act. 3. The assessee has filed a Paper Book in which he has given the dates of deposits of TDS as per the bank statement as well as as per the OLTAS and the same are contained in page No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch in the case of P L Haulwel Trailers Ltd., Vs. DCIT [2006] 100 ITD 485 (Chennai) wherein the identical issue in the context of the Treasury Rules referred to by the Revenue authorities was considered by the ITAT Chennai Bench in the context of levy of interest under section 234C of the Act. 6. We have given a very careful consideration to the rival submissions. We find that the issue raised in this appeal is no longer res integra and has been settled by the decision of the ITAT Chennai Bench in the case of P L Haulwel Trailers Ltd. (supra). The facts of the case before the ITAT Chennai Bench in the case of P L Haulwel Trailers Ltd. (supra) were that the assessee paid advance tax by depositing the cheques in the authorized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility of cheques in settlement of liabilities by making the drawer liable for penalties in case of bouncing of cheques due to insufficiency of the funds in the account or for the reason that it exceeds the arrangement made by the drawer with adequate safeguards to prevent harassment of honest drawers. Therefore, the intention of the Legislature is to encourage the citizens to settle their liabilities through cheque or draft. The Parliament, in order to facilitate the usage of cheque and bank draft in the normal transaction, also introduced similar provisions in the Income-tax Act. Furthermore, the CBDT, the highest administrative body of the direct taxes, issued circular in circular No. 261 dated 8-8-1979 clarifying that the date of paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otiable Instruments Act, 1881, as interpreted by the Supreme Court in the case of K. Saraswathy (supra), it is obvious that the date of payment relates back to the date of presentation of the cheque provided the cheque was honoured on its presentation. Therefore, there is an apparent conflict between the law enacted by the Parliament, namely, the Negotiable Instruments Act, 1881 on one hand and the Rule framed by executive authorities in exercise of their power under article 283(1) of the Constitution of India, on the other hand. Whenever there is a conflict between the rules framed by the executive authorities and the law enacted by the Parliament, it is obvious that the law enacted by the Parliament will prevail over the rules framed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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