2017 (8) TMI 564

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....ued circular no 676 dt 14/01/1994 and 639 dated 13/11/1992 which is binding on department. 3. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in directing the AO to verify the rate of interest chargeable U/s 201(1A) of IT Act 1961 instead of dealing with the matter itself." 2. Briefly the facts of the case are that an intimation u/s 154 of the IT Act was received by the assessee from DCIT-CPC TDS in respect of TDS Return (Form 26Q) filed for the 2nd quarter of F.Y. 2009-10, determining interest liability of Rs. 1,33,614/- on account of late payment of TDS. On pursing the intimation & the default statement, it was further observed that TDS of Rs. 66,92,054/- was deposited by the assessee on 08.08.2009 in place of due date which was 07.08.2009 and interest liability has been determined on late payment of TDS u/s 201(1A) @ 1.5%. Being aggrieved, the assessee carried the matter in appeal who has confirmed the interest demand. 3. The relevant findings of the ld. CIT(A) which are under challenge before us are reproduced as under:- "4.0 I have gone through the statement of facts filed by the appellant carefully. T....

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....ated 14.01.1994 and section 10 of General Clauses Act, it was concluded that assessee has not committed any default in payment of first installment of advance tax." It was submitted that in our case, the bank was closed due to strike on 06.08.2009 and 07.08.2009 both days was also equal to holiday because of no working due to not attending the staff due to strike and we have deposited the sums on next working day i.e. 08.08.2009 as admitted by both the lower authorities and hence the deposit date should be considered as deposited in time limit and no interest should have been charged by considering delay in deposit. The case is fully covered by our case. That there is also a case decided by Allahabad High Court in (2014) 304 ELT 652 (All.) in the case of Qurtzone shoe Component (India) Pvt.) Ltd. V/s Union of India-Held- 6. In support, reliance was also placed on CBDT circular no. 676 dated 14.01.1994 wherein it has clarified as under:- "That if the last day for payment of any installment of advance tax is a day on which the receiving bank is closed the assessee can make the payment as the next immediately following working day, and in such cases, the mandatory in....

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....d the assessee pays the due amount of advance tax on the next working day. 2. The matter has been carefully considered by the Board and it is felt that in such cases section 10 of the General Clauses Act, 1897 will be applicable. This section lays down that where any Act or proceeding is directed or allowed to be done or taken in any Court or office on a certain day or within a prescribed period, then, if the Court or office (in the present case the bank which is authorised to receive payment of advance tax from the assessee) is closed on that day or on the last day of the prescribed period, the Act or proceeding shall be considered as done or taken in due time after it is done or taken on the next day, afterwards, on which the Court or office ( or the bank) is open. In view of this provision, it is hereby clarified that if the last day for payment of any instalments of advance tax is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C of the Income-tax Act, 1961 would not be charged." 10. We have heard the rival conte....

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.... देय तिथि 15.06.2008 थी। इस दिन रविवार था, ऐसे में कम्पनी द्वारा 16.06.2008 को एडवांस टैक्स की पहली किश्त जमा करवाई गई। जब इस रिटर्न का फैसला इन्कम टैक्स विभाग द्वारा किया गया तो एडवांस टैक्स देरी से जमा करवाने बाबत धारा 234 सी के तहत तीन माह का ब्याज लग....