TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 286
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....Income Tax, Centralised Processing Cell- (TDS), CPC, Ghaziabad [for short 'DCIT, CPC-(TDS)]. That as a common issue involving identical facts is involved in the aforementioned appeals, therefore, the same are being taken up and disposed off by way of a consolidate order. We shall first advert to the appeal filed by the assessee against the order of the CIT(A), which in turn arises from the intimation of the DCIT, CPC-(TDS) under Sec. 200A in respect of the first quarter of A.Y. 2008-09. The assessee assailing the order of the CIT(A) has raised before us the following grounds of appeal : "1. The ld. Commissioner of Income Tax (Appeals) -60, Mumbai, has erred in law and in the facts and circumstances of the case in upholding the order passed by the Deputy Commissioner of Income-tax-CPC (TDS). wherein Oil and Natural Gas Corporation Limited was held as assessee in default for alleged delayed deposit, of TDS and interest was levied under section 201(1A) of the Income Tax Act, 1961. 2. The appel lant craves permission to add, al ter and/or amend any ground(s) of appeal before or at the time of hearing." 2. Briefly stated, the assessee viz. M/s Oil & Natural Gas Corporation Ltd. (....
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.... the very outset of the hearing of the appeal submitted that the assessee had tendered the cheque towards payment of TDS to State Bank Of India, Branch : Bandra Kurla Complex, Mumbai on 04.07.2007 i.e. well before the stipulated 'due date‟ i.e. 07.07.2007. In support of his aforesaid contention the ld. A.R took us through a consolidate 'Chart‟ wherein the respective dates of tendering of the cheques by the assessee to the bank in respect of all the four quarters for the year under consideration, along with a mention of the respective 'due dates‟ stood reflected. It was the contention of the ld. A.R that as per CBDT Circular No. 261 [F.No.385/61/79-IT (B)], dated 08.08.1979 in terms of Rule 80 of the Compilation of the Treasury Rules, if a cheque or a draft tendered in payment of government dues and accepted under the provisions of Rule 79 is honoured on presentation, then the payment is to be deemed to have been made on the date on which it was handed over to the government bankers. It was averred by the ld. A.R. that the aforesaid CBDT Circular No. 261, dated 08.08.1979 had not been withdrawn and holds the ground as on date. Further, in order to buttress his afor....
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....kes no distinction whether the payment is by way of TDS, advance tax, self-assessment tax etc. The relevant extract of the aforesaid CBDT Circular No. 261, dated 08.08.1979 reads as under: "In terms of Rule 80 of the Compilation of the Treasury Rules, if a cheque or draft tendered in payment of Government dues and accepted under the provisions of Rule 79 is honoured on presentation, the payment is deemed to have been made on the date on which it was handed over to the Government banker...." On a perusal of the order of the CIT(A), we find that he had declined to accept the aforesaid CBDT Circular No. 261, dated 08.08.1979, for the reason that as per him the "Central Treasury Rules (Old rules)" had been substituted by the "Central Government Account (Receipts and Payments) Rules, 1983" which therein governed the provisions of payment of government dues. The CIT(A) drawing support from the Central Government Account (Receipts and Payments) Rules, 1983, had therein concluded that as per the amended rules the government dues tendered in form of a cheque or draft shall be deemed to have been paid on the date on which it is cleared and entered in the receipt of scroll. Admittedly, we....
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....wel Trailers Ltd. Vs. DCIT (2006) 100 ITD 485 (Chennai) while deliberating on the levy of interest under Sec. 234C of the Act, had observed that as the assessee had paid 'Advance Tax‟ by depositing the cheques with the authorized banks within the 'due date‟, therefore, the date of payment was to be taken as the date of presentation of the cheques by the assessee. The Tribunal had arrived at the aforesaid view after considering viz. (i) CBDT Circular No. 261, dated 08.08.1979; (ii) Central Government Account (Receipts & Payments) Rules, 1983; and (iii) the judgment of the Hon‟ble Supreme Court in the case of K. Kaplana Saraswathi Vs. P.S.S. Somasundram Chettiar 1980 AIR 512 (SC). Still further, the ITAT, Bangalore in ITO Vs. Bradcom Communication Technologies (P) Ltd. [ITA No. 895 & 900/2014] had observed that where the assessee had made the payment before the 'due date‟, it was thereafter beyond its control to ensure the transmission of the amount to the government account within the stipulated 'due date‟. On the basis of the aforesaid observations, it was held by the Tribunal that the assessee could not be faulted for delay on the part of the bank or ....
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....il and Natural Gas Corporation Limited was held as assessee in default for alleged delayed deposit of TDS and interest was levied under section 201(1A) of the Income-tax Act, 1961. 2. The Ld. Commissioner of Income Tax (Appeals)-60, Mumbai, has erred in law and in the facts and circumstances of the case in upholding the charge of interest under section 220(2) of the Income-tax Act, 1961. 3. The appellant craves permission to add, alter and/or amend any ground(s) of appeal before or at the time of hearing." 11. Briefly stated, the assessee had filed an offline rectification on 04.03.2015 in Form No. 26 for the 'first quarter‟ of the financial year 2007-08, which was processed by the TDS Reconciliation Analysis and Correction Enabling System (for short 'TRACES‟), Ghaziabad on 06.03.2015. On the basis of an intimation under Sec. 154 r.w.s 200A, a demand of Rs. 9,72,300/- was determined towards viz. (i). Interest on late payment : Rs. 9,07,553/-; (ii). Short deduction/collection : Rs. 14/-; (iii). additional late payment interest: Rs. 46,223/-; and (iv). Interest under Sec. 220(2): Rs. 18,509/-. It was observed by the assessee that interest was levied under Sec. 201....
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....arising from the intimation of the DCIT, CPC-(TDS) under Sec. 154 in respect of the 'second quarter‟ of A.Y. 2008-09. The assessee assailing the order of the CIT(A) has raised before us the following grounds of appeal : "1. The Ld. Commissioner of Income Tax (Appeals) -60, Mumbai, has erred in law and in the facts and circumstances of the case in upholding the order passed by the Deputy Commissioner of Income-tax-CPC (TDS), wherein Oil and Natural Gas Corporation Limited was held as assessee in default for alleged delayed deposit of TDS and interest was levied under section 201 (1A) of the Income-tax Act, 1961. 2. The Ld. Commissioner of Income Tax (Appeals) -60, Mumbai, has erred in law and in the facts and circumstances of the case in upholding the charge of interest under Section 220 (2) of the Income- Tax Act, 1961. 3. The appellant craves permission to add, alter and/or amend any ground(s) of appeal before or at the time of hearing." 16. Briefly stated, the assessee had filed an offline rectification on 04.03.2015 in Form No. 26 for the 'second quarter‟ of the financial year 2007-08, which was processed by the TDS Reconciliation Analysis and Correction En....
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....o. 5396/Mum/ Before parting, we may herein observe that as we have quashed the interest levied by the A.O under Sec. 201(1A), therefore, the consequential demand raised by the A.O towards additional late payment interest and Interest under Sec. 220(2) shall also stand vacated. 19. The appeal filed by the assessee is allowed. ITA No. 5397/Mum/2017 A.Y. 2008-09 20. We shall now advert to the appeal filed against the order of the CIT(A) arising from the intimation of the DCIT, CPC-(TDS) under Sec. 154 in respect of the 'third quarter‟ of A.Y. 2008-09. The assessee assailing the order of the CIT(A) has raised before us the following grounds of appeal : "1. The Ld. Commissioner of Income Tax (Appeals) -60, Mumbai, has erred in law and in the facts and circumstances of the case in upholding the order passed by the Deputy Commissioner of Incometax- CPC (TDS), wherein Oil and Natural Gas Corporation Limited was held as assessee in default for alleged delayed deposit of TDS and interest was levied under section 201(1A) of the Income-tax Act, 1961. 2. The appellant craves permission to add, alter and/or amend any ground(s) of appeal before or at the time of hearing." 21. Br....
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....e assessee for the 'third quarter‟ in ITA No. 5397/Mum/2017. 24. The appeal filed by the assessee is allowed. ITA No. 5398/Mum/2017 A.Y. 2008-09 25. We shall now advert to the appeal filed by the assessee against the order of the CIT(A) arising from the intimation of the DCIT, CPC- (TDS) under Sec. 154 in respect of the 'fourth quarter‟ of A.Y. 2008-09. The assessee assailing the order of the CIT(A) has raised before us the following grounds of appeal : "1. The Ld. Commissioner of Income Tax (Appeals) -60, Mumbai, has erred in law and in the facts and circumstances of the case in upholding the order passed by the Deputy Commissioner of Income-tax-CPC (TDS). wherein Oil and Natural Gas Corporation Limited was held as assessee in default for alleged delayed deposit of TDS and interest was levied under section 201(1A) of the Income-tax Act, 1961. 2. The Ld. Commissioner of Income Tax (Appeals) -60. Mumbai, has erred in law and in the facts and circumstances of the case in upholding the charge of interest under section 220(2) of the Income-tax Act, 1961. 3. The appellant craves permission to add, alter and/or amend any ground(s) of appeal before or at the time o....