Interest under section 234C not leviable where the cheques were deposited in time but encashed after due dates

DCIT Vs M/s Toyoto Boshoku Automotive (I) Pvt Ltd. (ITAT Bangalore)- By virtue of Board Circular No. 261 dated- 8.8.79 and the decision of the Supreme Court in the case of UCO Bank in 238 ITR 889, we find that it is a settled law that the date of presentation of the cheque should be treated as the date of payment of tax, in spite of the fact that some time was required for realisation of the cheque. In the result, the appeal filed by the assessee is allowed’.8.1 In the instant case, admittedly, the cheques were presented and deposited before the authorised banker within the due date of payment of advance tax.

Cheques were admittedly en-cashed and amounts were realised subsequently. It is not the case of the revenue that the cheques were returned unpaid at any point of time. Therefore, the facts being identical to the facts in the case of M/s GE Medical Systems (India) Pvt. Ltd. (supra), we uphold the order of the CIT(A) and dismiss the appeal filed by the department.