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TMI Blog2023 (3) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... rest payable account and thereore the same is not liable to TDS under Section 194A is devoid of any merit. Section 194A of the Act mandates that any persosn responsbile for paying to a resident any income by way of interest (other than interest on security) shall at the time of credit of such income to the account of the payee or payment thereon in any mode shall deduct TDS thereon at the rate in force. The Explanation below sub-section (1) of Section 194A of the Act clarifies that where any income by way of interest is credited to any account, whether called interest payable account or suspense account or any other name in the books of account of the payer, such credit shall be deemed to be credit for the purpose of Secton 194A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hri George George K., Judicial Member And Ms. Padmavathy S., Accountant Member For the Assessee : Shri Joseph Markose, Sr. Advocate For the Revenue : Smt. J.M. Jammuna Devi, Sr. DR ORDER Per: George George K., J.M. These appeals at the instance of the assessee are directed against the four orders of the CIT(A) (all dated 12.07.2022) passed under Section 250 of the Income Tax Act, 1961 (the Act). The orders of the CIT(A) arose out of the orders passed by the Assessing Officer (AO) under Section 201(1) 201(1A) of the Act. The relevant assessment years are 2016-17 to 2019-20. The assessee has also filed stay applications seeking stay of recovery of the outstanding demand. 2. There is a delay of 65 days in filing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n granted. The assessment of the whole amount of TDS as an assessee in default is clearly erroneous. D. Since the customers are numerous it was not possible to obtain Certificate in Form 26A. However, the TDS returns filed by the Appellant for subsequent year when TDS was deducted and paid ought to have been considered by the authorities below. Based thereon if at all interest for delayed payment of TDS alone could have been demanded and the assessment under Section 201 is clearly erroneous. 4. The brief facts of the case as follows: - The assessee is a district Co-Operative Bank. Inspection was carried out in the premises of the assessee bank on 28.03,2019. It was noticed that the assessee was liable to deduct tax at source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same ought to have been granted. 7. The learned D.R., on the other hand, supported that orders of the AO and the CIT(A). 8. We have heard the rival contentions and perused the material on record. The assessee s contention before the AO and the CIT(A) was that a part of the interest charged to the P L Account has neither been paid nor credited to the customers account, rather credited to the interest payable account and thereore the same is not liable to TDS under Section 194A of the Act. The above contetnion of the assessee is devoid of any merit. Section 194A of the Act mandates that any persosn responsbile for paying to a resident any income by way of interest (other than interest on security) shall at the time of credit of such inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucted at source under Section 194A of the Act at a later point of time for claiming credit/adjustment against the orders passed under Section 201(1) of the Act. Once again we make it clear that the assessee shall be liable for interest as per the provisions of Section 201(1A) of the Act in respect of the tax deducted at source at a later point of time. It is ordered accordingly. 10. The assessee has also filed stay petitions seeking stay of recovery of outstanding demand. Since we have already disposed off the appeals on merits, the stay petitions filed by the assessee has become infructuous and the same are dismissed. 11. In the result, the appeals filed by the assessee are partly allowed for statistical purposes and the stay petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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