2021 (9) TMI 279

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....on 18th September, 18th December and 17th March whereas the due date for payment of advance tax was 15th September and 15^th March. Accordingly, the revenue charged interest u/ s 234B and 234C for default in payment of advance tax. 3. The assessee contended that the amounts have been indeed paid on 15th September, 14th December and 14th March. The assessee has submitted certificate from the Punjab National Bank that the cheques issued by the assessee have been deposited and sent for clearing on the same date (i.e. before 15th) but were cleared after the due date (17 th and 18th). Hence, he argued that the assessee was not liable to pay interest for default of payment of advance tax. The ld. AR also relied on the Circular No. 676 of CBDT ....

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.... 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 i f the last day for payment of any installments 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 234 B and 234 C of the Income- tax Act, 1961 would not be charged. Circular : No. 676 , dated 14 - 1 - 1994 . 5. A collecting banker acts as an agent of the customer if he credits the latter's account with the amount of the cheque after the am....

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.... 10. In the original assessment order passed u/s 143 (3 ) the Ld. Assessing Officer has added a sum of Rs. 7 ,03 ,654/- on account of difference in interest income shown by the assessee from various banks, (ICICI Bank Rs. 70, 396/-, Vijaya Bank Rs. 9,575 /- and HDFC Bank Rs. 6 ,23,683 /-) while comparing the same from data received through AIR. 11. It was argued that during the year under appeal, the accounts of the assessee were finalized and signed on 18.05.2009 and interest receivable on deposits with other banks for the year was provided on provisional/approximate basis as till that date Interest/TDS certificate were not received from the banks who has deducted the Tax at Source. 12. It was argued that if there is any difference i....

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....4,11,239 /- 27,96,713 /- 2,05,479 /- 2010-11 7,68,357 /- 39,92,463 /- 3,70,942 /- 2011-12 10,54,110 /- 25,73,380 /- 12,36,829 /- Total Int. Income 76,28,026 /- 93, 62 ,556/- 18,13,250 /- 15. Details of interest as per Certificate issued by them is as follows: A.Y. HDFC Bank ICICI Bank Vijaya Bank 2008-09 22,41,903 /-  ----- ----- 2009-10 36,85,653 /- ----- 2,15,054 /- 2010-11 6,46,360 /- ----- 4,99,674 /- 2011-12 10,54,110 /- 31,69,178 /- 12,25,702 /- Total Int. Income 76,28,026 /- 31,69,178 /- 19,40,430 /- As per 26AS 76,28,026 /- 71, 44 ,823/- 18,74,430 /- 16. From the above, it is clear that while check....