2014 (11) TMI 487

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....ate of presentation of cheque in the bank is to be reckoned as the date of payment of advance tax and not the date on which the cheque is cleared and entered in the receipt roll as required under Rule 20 of the Central Government Account (Receipts and Payments) Rules 1983, for the purpose of calculating interest under Section 234C of the Income Tax Act? 2.1. The brief facts of the case are as under: The respondent/assessee is a company engaged in the business of home finance. The assessee filed return of income for the assessment year 2009-2010 admitting Rs. 29,44,58,482/- as its total income. The Assessing Officer completed the assessment under Section 143(3) of the Income Tax Act and disallowed a sum of Rs. 13,85,199/- applying the pro....

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....upreme Court in Commissioner of Income Tax v. Ogale Glass Works Ltd., [1954] 25 ITR 529, wherein it is held as under: "11. ..... When it is said that a payment by negotiable instrument is a conditional payment what is meant is that such payment is subject to a condition subsequent that if the negotiable instrument is dishonoured on presentation the creditor may consider it as waste paper and resort to his original demand: (Stedman v. Gooch, ((1791) 1 Esp 5). It is said in Benjamin on Sale, 8th Edn. p. 788: 'The payment takes effect from the delivery of the bill, but is defeated by the happening of the condition i.e. non-payment at maturity.' In Byles on Bills, 20th Edn., p. 23 the position is summarised pithily as follows: ....