Mumbai Metro Politian Region Development Authority Vs DCIT (ITAT Mumbai)
The appeals before the Income Tax Appellate Tribunal pertained to Assessment Year 2022–23 and challenged the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, which upheld the levy of interest under section 201(1A) of the Income Tax Act, 1961 for alleged delay in deposit of TDS. Since the facts across appeals were identical, the Tribunal passed a consolidated order, taking one appeal as the lead case.
The central issue involved the levy of interest amounting to approximately ₹39.57 lakh on account of alleged late payment of TDS. The Assessing Officer had passed an order under section 200A and raised a demand that included interest under section 201(1A), treating the payment as delayed. The lower appellate authority confirmed this view.
The assessee contended that the due date for depositing TDS for March 2022 was 30.04.2022 and that it had issued and tendered a cheque dated 29.04.2022 to the bank within the prescribed time. The cheque was presented on the same day, as evidenced by acknowledgment and stamped receipt from the bank. However, the cheque was cleared on 02.05.2022 due to intervening factors, including a holiday on 01.05.2022 and technical issues that delayed reflection of payment on the income tax portal. The assessee argued that there was no delay on its part since the cheque was tendered within the due date and that interest should not be levied.
