National Insurance Co. Ltd Vs ACIT (ITAT Kolkata)
ITAT Kolkata held that interest u/s 201(1A) of the Income Tax Act for late deposit of TDS amount is not leviable as TDS amount was duly deposited within the due date, however, due to technical glitch the bank could not remit the amount immediately to the account of the department.
Facts- The brief facts of the case as taken from the impugned order of the CIT(A) are that the appellant was served with an Intimation dated 02/06/2019 issued u/s 200A for the Financial Year 2018 19 (relevant for the Assessment Year 2019 20) wherein a Demand of Rs.1,10,43,080 was raised. It was observed that the demand of Rs. 1,10,43,080 was raised on the basis of levying of interest of Rs. 1,10,43,076 u/s 201(1A) for alleged late payment of TDS by the appellant.
Conclusion- 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) of the Act. The 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. In view of this, the impugned levy of interest by the lower authorities is set aside.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The present appeal has been preferred by the assessee against the order dated 25.03.2022 of the National Faceless Appeal Centre (hereinafter referred to as the ‘CIT(A)’) passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). The assessee in this appeal has taken the following grounds of appeal:
“1. That the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi was wrong in dismissing the Appeal filed by the Appellant against the Intimation dated 02/06/2019 issued u/s 200A for the Financial Year 2018-19 (relevant for the Assessment Year 2019- 20).
2. That without prejudice to the contention raised in Ground No. 1 above, the Commissioner of Income-tax (Appeals), NFAC, was wrong in stating in the Appellate Order that the Appeal of the appellant had allegedly related to levy of Fee u/s 234E since the Appeal had actually been against the levying of Interest of Rs.1,10,43,076 u/s 201 (1A).
3. That without prejudice to the contentions raised in Grounds Nos. 1 and 2 above, the Ld. Commissioner of Income-tax (Appeals), NFAC erred in not taking into account the written submissions furnished by the appellant in response to the Notices dated 13/01/2021 and 02/03/2022 issued u/s 250 by the NFAC.
4. That the appellant craves leave to add, alter or withdraw any ground or grounds of appeal before or at the time of Hearing of the appeal.”
2. The brief facts of the case as taken from the impugned order of the CIT(A) are that the appellant was served with an Intimation dated 02/06/2019 issued u/s 200A for the Financial Year 2018 19 (relevant for the Assessment Year 2019 20) wherein a Demand of Rs.1,10,43,080 was raised. It was observed that the demand of Rs. 1,10,43,080 was raised on the basis of levying of interest of Rs. 1,10,43,076 u/s 201(1A) for alleged late payment of TDS by the appellant.
During the month of March, 2019 the appellant had deducted taxes at source u/s 195 from the credited/paid to Non resident/Foreign Companies and the concerned TDS amounts were tendered by the appellant at the Authorized Bank and in turn the said Bank deposited to the credit of the Central Government as under:
