https://www.taxtmi.com/caselaws?id=176555 A dishonoured cheque tendered as advance tax does not count as payment on the original date of tender. The relation-back principle and the CBDT circular invoked by the applicant apply only where the cheque is ultimately honoured in the ordinary course; once the cheque is returned unpaid, it ceases to operate as a valid payment instrument and any later redeposit with a fresh challan is treated as a fresh tender. Payment is complete only when the amount is cleared and entered in the receipt scroll under the relevant Government payment rules. Interest under sections 234B and 234C therefore remained payable because the tax was treated as paid only on the later date. en-us Tue, 09 May 1995 00:00:00 +0530 Fri, 25 Dec 2015 20:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=176555 A dishonoured cheque tendered as advance tax does not count as payment on the original date of tender. The relation-back principle and the CBDT circular invoked by the applicant apply only where the cheque is ultimately honoured in the ordinary course; once the cheque is returned unpaid, it ceases to operate as a valid payment instrument and any later redeposit with a fresh challan is treated as a fresh tender. Payment is complete only when the amount is cleared and entered in the receipt scroll under the relevant Government payment rules. Interest under sections 234B and 234C therefore remained payable because the tax was treated as paid only on the later date. Case-Laws Income Tax Tue, 09 May 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=176555