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TMI Blog2022 (12) TMI 1259X X X X Extracts X X X X X X X X Extracts X X X X ..... unt by the bank to the account of the department are being faced, which are beyond the control of the concerned assessee or the person who is supposed to upload such information, form or to remit the amount, as the case may be. This type of technical glitches is beyond the control of concerned assessee/person for which the concerned assessee cannot be penalised. The facts in this case are apparent that the assessee had deposited the amount with the authorized bank within the due date, however, due to technical glitch the bank could not remit the amount immediately to the account of the department and there occurred a delay of one day because of which the assessee cannot be burdened with levy of interest u/s 201(1A) - assessee cannot be burdened because of not doing an act which was beyond his control. Even otherwise, as observed above, the Bank has accepted the payment being agent of the Income Tax Department, and the assessee has deposited the payment with the bank before the due date.The impugned levy of interest by the lower authorities is set aside. Appeal of the assessee stands allowed. - I.T.A No.253/Kol/2022 - - - Dated:- 16-11-2022 - Shri Sanjay Garg, Judicial Member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder: SI. No. Amount of TDS(Rs.) Actual Date of Tender at the Bank Actual Date of Deposit by the Bank Challan Serial Number 1) 66,560 30/04/2019 02/05/2019 00006 2) 3,995 26/04/2019 02/05/2019 45332 3) 2,70,022 26/04/2019 02/05/2019 45512 4) 36,76,23,998 26/04/2019 02/05/2019 45521 The Authorized Bank, viz., Bank of Baroda informed the appellant subsequent to its actual tender of the TDS, that due to technical issues at the Bank, the TDS amounts could not be remitted by the Bank on or before 30/04/2019, but only on 02/05/2019 (01/05/2019 being a Holiday) they remitted the same. The concerned Authorized Bank issued 4 (four) separate certificates all dated 21/05/2019 certifying the fact of its inability to deposit the TDS amounts by the due date 30/04/2019 and it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. CIT(A) are totally irrelevant to the facts of the case. The ld. CIT(A) wrongly taken it as a case of default in furnishing the TDS statement and thereby held that the levy of fee u/s 234E of the Act was justified, whereas, the present case was that of levy of interest u/s 201(1A) of the Act. The relevant part of the order of the CIT(A), for the sake of ready reference, is reproduced as under: 5.1 Ground No 1 to 4 are related to levy of fee u/s 234E of the Act. These grounds are inextricably linked to ground 1,2 3, hence they are decided altogether. The appellant has challenged levy of fee u/s 234E in the order u/s 200A. I have carefully considered the grounds raised by the appellant and the submission of the appellant. I have also gone through the order u/s 200A passed by the ACIT CPC CELL TDS, Ghaziabad. The provisions of Section 200(A)(1)(c) was amended by the Finance Act, 2015 w.e.f. 01.06.2015. From the reading of the provisions of the Act, it is clear that the provision of fee is mandatory in nature levied on processing of the late filing of e-TDS statement(s) under Section 200A(1)(c) of the Act after amendment w.e.f. 01.06.2015 by the Finance Act, 2015. It is eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sent appeal. The order of the CIT(A) is, therefore, not sustained at all. 6. However, now coming to the facts of this case, there is allegedly one day s default in depositing of TDS amount into the account of the Income Tax Authorities. The case of the assessee is that it has deposited the TDS amount in the authorized collecting bank within the due date but it was the authorized collecting bank which due to some technical glitch could not remit the same to the account of the Income Tax Department. The concerned authorised bank has also issued a letter in this respect, the contents of which, for the sake of ready reference, are reproduced as under: BOB/INDIAE/2019/ Bank of Baroda 24-06-2019 The Assistant Commissioner of Income Tax, Centralized Processing Cell, TDS, TDS, CPC, Aaykar Bhavan, Sector -3, Vaishali, Ghaziabad, UP - 201 010. Dear Sir/ Madam, Re: Remittance of TDS on account of M/s National Insurance Co Ltd for Q4 March 19- Delay in Remittance Penalty Levied by Income Tax Office. We refer to above and inform that M/s National Insurance Co Ltd is having Corporate Account with our branch and in order to remit the TDS the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank has issued letter in this respect that the amount was duly deposited by the assessee before the due date and that there was no default on the part of the assessee. Moreover, though the Income Tax Department and other Government Organisations have shifted to the online system, however, the said system is in the developing stage and often there are technical glitches faced due to which certain acts of uploading of forms etc and as in the present case, the remittance of the amount by the bank to the account of the department are being faced, which are beyond the control of the concerned assessee or the person who is supposed to upload such information, form or to remit the amount, as the case may be. This type of technical glitches is beyond the control of concerned assessee/person for which the concerned assessee cannot be penalised. The facts in this case are apparent that the assessee had deposited the amount with the authorized bank within the due date, however, due to technical glitch the bank could not remit the amount immediately to the account of the department and there occurred a delay of one day because of which the assessee cannot be burdened with levy of interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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