TaxTMI 
TaxTMI 
TaxTMI 
2017 (10) TMI 1679
X X X X Extracts X X X X
X X X X Extracts X X X X
....ved in the appeal is quantum of interest u/s 201(1A) on account of late deposit of TDS by the assessee. The registry has noted that the appeal of the revenue has been filed with a delay of 23 days. However, Ld. Departmental Representative [DR] has drawn our attention to the fact that the date of communication of impugned order was wrongly written in Form 36 and the appeal was within time considering the correct date. The Ld. AR raised no objection against the same. Therefore, finding the same in order, we proceed further to decide the same on merits. 2. Briefly stated, the assessee trust, holding TAN-MUMM16747D filed TDS return for Quarter-1 of the impugned AY which was processed by TDS CPC vide communication reference No. TDS/0910/....
X X X X Extracts X X X X
X X X X Extracts X X X X
....interest is to be charged for only one month whereas system has computed it for three months. The AO is directed to compute the interest for one month. Issue revised DN and challans. Ground is allowed in part. Aggrieved, the assessee as well as revenue is in appeal before us. The assessee is aggrieved by imposition of interest for one month whereas revenue is aggrieved by relief provided to the assessee by Ld. CIT(A). 4. The Ld. Representative for assessee [AR] while drawing our attention to the documents placed in the paper book, explained that the due date for deposit of TDS was 07/07/2009 and the assessee deposited four cheques all dated 06/07/2009 vide pay-in-slip dated 07/07/2009. However, the amount was debited from the account ....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... Proceeding further, assessee has deposited 4 cheques towards deposit of TDS i.e. Cheque Nos. 812011, 812012, 812013 & 812025 which are all dated 06/07/2009 and the same cheques are reflected in the justification report. All these cheques are deposited vide separate pay-in-slips which are all dated 07/07/2009, however, the same do not bear any stamp from the bank. In support, the assessee has furnished one certificate No. AP-7/I TAX/MMRDA/2016-17 dated 18/11/2016 from his banker Bank of Maharashtra which states that the said cheques were received by the Bank on 07/07/2009 late and the same could not be punched in tax software and accordingly, the same was debited to the account on 08/07/2009 & tax receipt were generated by the sy....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the same idea in the following passage in his judgment at page 682 : "In this case I think what took place amounted to a conditional payment of the debt; the condition being that the cheque or bill should be duly met or honoured at the proper date. If that be the true view, then I think the position is exactly as if an agreement had been expressly made that the bill or cheque should operate as payment unless defeated by dishonour or by not being met; and I think that that agreement is implied from giving and taking the cheques and bills in question." The following observations of Lord Maugham in Rhokana Corporation v. Inland Reveue Commissioners (L.R. [1938] AC 380 at p.399) are also apposite: "Apart from the expr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ons 13(2)(b) or 13(2)(h) of the Act. The fact that most of the trustees of the assessee trust and the directors of M/s Apollo Tyres Ltd. are related is absolutely irrelevant. 8. Further, we are inclined to reproduce relevant portion of CBDT circular No. 261 dated 08/08/1979 which reads as follows:- Circular: No. 261 [F. No. 385/61/79-IT(B)], dated 8-8-1979. Recording date of tender of cheque and date of its realisation on challans for payment of direct taxes is to be done by branch of authorised public sector bank where it is tendered for payment 1. 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 prov....