TDS challan bearing one day delay - Interest levy under section 201(1A)

Facts:

Assessee had instructed his bank to remit TDS on 07-07-2020 which the bank complied with by debiting their account on 07-07-2020 but the challans were dated 08-07-2020 (1 day later). Thus interest levy under section 201(1A) was upheld by AO and CIT(A). On further appeal by the assessee -

Held in favour of the assessee that since the money was already with the revenue on the same date 07-07-2020 it would have not made any difference to the revenue. Thus interest levy was quashed.

Ed. Note: Hypertechnicality seen by the revenue is not an assessee friendly measure.

Case: BT (India) (P) Ltd. v. ACIT 2023 TaxPub(DT) 2475 (Del-Trib)