Case Law Details
Standard Chartered Bank Vs DCIT (ITAT Mumbai)
The issue under consideration is whether the Interest Under section 201(1A) for late deposit of Tax Deducted at Source-(“TDS”) levied by CIT is justified in law?
ITAT states that, Circular No. 261, dated 08/08/1979 issued by the CBDT, unless withdrawn or amended, would hold the ground and would be binding on the revenue. Further, the payment would be deemed to have been made on the date the cheque was handed over to the banker and the date of payment was to be taken as the date of presentation of the cheques by the assessee. It also supports the proposition that the payment would relate back to the date of presentation of cheque unless the cheque is dishonored. The binding decisions cited by the assessee before Ld. CIT(A) also supports the said proposition. Similar view has been taken by Bangalore Tribunal in ITO V/s Broadcom Communication Technology Pvt. Ltd. (ITA Nos. 895 & 900/ Bang/2014 dated 11/09/2015). No contrary decision is on record. Respectfully following the ratio of all these decisions, ITAT hold that payment of TDS by the assessee would relate back to the date of presentation of cheques by the assessee to the banker. Accordingly, TDS-CPC, Ghaziabad is directed to revise the aforesaid intimation by taking the date of tender of cheques by the assessee as the actual date of payment and re-compute interest payable by the assessee, if any. The interest demand u/s 220(2) being consequential in nature, may also be recomputed. Resultantly, the appeal filed by the assessee allowed.
FULL TEXT OF THE ITAT JUDGEMENT
The assessee has common grievance in all the 4 captioned appeals for Assessment Year (AY) 2008-09. The facts are pari-materia the same in all the appeals and therefore, the appeals were heard together and are now being disposed-off by way of this consolidated order for the sake of convenience and brevity.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
