Date of cheque tendering treated as payment; system use of realisation date wrongly created TDS interest liability, refund upheld.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Date of tendering a cheque is to be treated as the date of payment where the cheque is subsequently honoured, and therefore an interest demand based on cheque-realisation date is incorrect; the Board's prior clarification (Circular) supports treating tendering date as payment. The Online Tax Accounting System's use of cheque-realisation date produced an illegitimate late-payment interest demand; the petitioner had tendered cheques within the statutory due date as certified by the bank, so no delayed-payment interest arises and the refund of amounts paid under protest is justified.....