TaxTMI 
TaxTMI 
2022 (9) TMI 823
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....CPC-TDS"], for five assessment years [for short "AY"] 2011-12 to 2015-16. 2. Since the legal issue involved in these bunch of appeals is identical, with the agreement of both the parties, the matter is heard together for a consolidated order, resultantly the adjudication in lead case ITA/305/PUN/2020 positioned in succeeding paragraphs, shall mutatis mutandis apply to ITA/306 to 315/PUN/2020. 3. Before travelling to facts, it's necessary to reproduce the identical grounds assailed by the appellant in all these appeals as; 1. On the facts and in the circumstances of the case and in law learned A.O. erred in levying the interest on payment defaults u/s 201(1A) for sum of Rs x,xx,xxx/- be disregarding appellant's contention. ....
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....ient trained manpower with the assessee, and in so far as the delayed payment of TDS is concerned, it is prayed that, the assessee be exonerated from the application of section 201(1) for the reasons that, large contractors / payees from whose payments tax (TDS) was deducted, must have declared the payments (including tax) as their income in the income tax returns filed by them, which can be witnessed from Form No 26AS. The said submission however, did not inspire the Ld. CIT(A), who in turn reverberating the factual matrix in the light of judicial pronouncement confirmed the statutory levy of interest u/s 201(1A) & 220(2) of the Act, apropos the Ld. FAA granted partial relief by deleting late fees levied u/s 234E in the light of amendment ....
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....ate Tribunal Rules, 1963 [for short "ITAT, Rules"] perused the material placed on records and duly considered the facts of the case in the light of settled legal position and the case laws relied upon by the appellant assessee as well the respondent revenue. 7. The only substantive question to be adjudicated under the present bunch of appeals relates, as to 'whether default or failure to pay the TDS within prescribed time limit is sufficient to hold the appellant as an 'assessee in default' within the ambit of section 201(1) of the Act?' Conversely 'whether levy of interest for delayed payment of TDS is protected by the first proviso to section 201(1) of the Act?' and in reaching the answer hereto, it is apt to quote the provision in ver....
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....ch person, without good and sufficient reasons, has failed to deduct and pay such tax. [(1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,- (i) at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and (ii) at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted....
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....e tax (TDS) after such deduction to the credit of exchequer as required by or under the Act. Nevertheless, the first proviso appended to section 201(1) of the Act excludes certain person from the application of deeming fiction subject to compliance of certain conditions; however such exclusion does not enumerate both the situations endorsed by section 201(1) of the Act. Nota bene, the exclusion by virtue of first proviso is restricted to first situation or occasion or the category of person that is to say, the person who fails to deduct tax (TDS) and not the latter category of person who after such deduction of tax (TDS) fails to pay either whole or part of deducted tax (TDS) as required by or under the Act, and such failure defacto trigger....
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....both the appellate proceedings. 12. Thus, in the present case, admittedly there was exfacie delay in depositing the deducted tax (TDS) within the stipulated due dates, for the reasons interest u/s 201(1A) of the Act found charged and such levy being automatic and without escapement finds force in para 10 of very same decision of Hon'ble Supreme Court in "Hindustan Coca-Cola Beverages Pvt. Ltd." (supra), which was relied by the Ld. AR and which reads as under; "10. . . . . However, this will not alter the liability to charge interest under section 201(1A) of the Act till the date of payment of taxes by the deductee-assessee" (Emphasis supplied) 13. Since the said default de jure is outside the exclusion carved out by ....