| |
| The Tax Publishers2020 TaxPub(DT) 3327 (Mum-Trib) INCOME TAX ACT, 1961
Section 201(1A)
Interest demand on account of late payment of TDS under section 201(1A) was to be computed with reference to date of presentation of cheques by assessee to the banker as the cheque was not dishonored and, therefore, AO erred in considering date of realization of cheques as the date of payment.
|
Tax deduction at source - Assessee-in-default - Levy of interest under section 201(1A) - Relevant date for computing interest--Date of presentation of cheques to authorized banker or the date of realization thereof
Assessee challenged interest demand on account of late payment of TDS under section 201(1A), contending that processing system, for the purpose of computing interest, erroneously considered date of realization of cheques as the date of payment instead of date of tendering of TDS cheques to the authorised bank by assessee.Held: Payment of TDS by assessee would relate back to date of presentation of cheques by assessee to the banker as the cheque was not dishonored. Accordingly, TDS-CPC, was directed to revise intimation by taking date of tender of cheques by assessee as the actual date of payment and re-compute interest payable by assessee, if any.
Followed:Oil and Natural Gas Corporation Ltd. v. Dy. CIT 103 Taxmann.com 396, dated 30-11-2018.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2007-08
IN THE ITAT, MUMBAI BENCH
 SUBSCRIBE FOR FULL CONTENT
|