Interocean Shipping (India) Pvt. Ltd., New Delhi V. DCIT CPC-TDS, New Delhi

ITA 3637/DEL/2016

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9250 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 20-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB SENIOR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH B : NEW DELHI) BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.3637/DEL./2016 (ASSESSMENT YEAR : 2008-09) ITA NO.3638/DEL./2016 (ASSESSMENT YEAR : 2015-16) INTEROCEAN SHIPPING (INDIA) PVT. LTD., VS. DCIT, CP C-TDS, 75, LINK ROAD, LAJPAT NAGAR III, NEW DELHI. NEW DELHI 110 024. (PAN : AAAPS1392K) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SANJIV RAI MEHRA, FCA REVENUE BY : MS. ASHIMA NEB, SENIOR DR DATE OF HEARING : 17.12.2018 DATE OF ORDER : 21.12.2018 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : SINCE COMMON QUESTIONS OF FACTS AND LAW HAVE BEEN R AISED IN BOTH THE AFORESAID APPEALS, THE SAME ARE BEING D ISPOSED OFF BY WAY OF CONSOLIDATED ORDER TO AVOID REPETITION OF DI SCUSSION. 2. THE APPELLANT, INTEROCEAN SHIPPING (INDIA) PVT. LTD. (HEREINAFTER REFERRED TO AS THE ASSESSEE) BY FILI NG THE PRESENT APPEALS, SOUGHT TO SET ASIDE THE IMPUGNED ORDERS BO TH DATED ITA NO.3637 & 3638/DEL./2016 2 28.03.2016 PASSED BY LD. CIT (APPEALS)-41, NEW DELH I QUA THE ASSESSMENT YEARS 2008-09 & 2015-16 ON THE GROUNDS I NTER ALIA THAT :- ITA NO.3637/DEL/2016 (AY 2008-09) 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-41, NEW DELHI ERRED IN LAW AND ON FACTS I N UPHOLDING LEVY OF INTEREST @ 1.50% PER MONTH FOR TW O MONTHS TOTAL AMOUNTING TO RS.35,530/- FOR THE TAX D ULY DEPOSITED ON DUE DATE I.E. 07.07.2007 AND THE SAME WAS CLEARED IN NORMAL BANKING CHANNELS ON 10.07.2007. ITA NO.3638/DEL/2016 (AY 2015-16) 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-41, NEW DELHI ERRED IN LAW AND ON FACTS I N UPHOLDING LEVY OF INTEREST @ 1.50% PER MONTH FOR TW O MONTHS TOTAL AMOUNTING TO RS.10,65,320/- FOR THE DE LAY IN PAYMENT OF TDS OF ONE DAY WHEREAS AS PER THE INTERPRETATION GIVEN BY THE SUPREME COURT IN CIT VS . ELLY LILLY & CO. 178 TAXMAN 505, THE PENAL INTEREST HAS TO BE CALCULATED FROM THE DATE OF TAX DEDUCTIBILITY OF THE ACTUAL DATE. 2. BRIEFLY STATED THE FACTS NECESSARY FOR ADJUDICAT ION OF THE CONTROVERSY AT HAND ARE : IN ASSESSMENT YEAR 2008-0 9, THE ASSESSEE DEDUCTED DUE TAX FOR THE QUARTER ENDING 30.06.2007 AND REMITTED THE SAME THROUGH BANKING CHANNEL BY DEPOSITING A CH EQUE ON 07.07.2007 WHICH WAS CLEARED IN THE NORMAL BANKING CHANNEL ON 10.07.2007 AS AGAINST THE DUE DATE OF TAX AS 07.07. 2007. ITA NO.3637 & 3638/DEL./2016 3 CONSEQUENTLY, ASSESSING OFFICER RAISED A DEMAND OF INTEREST FOR TWO MONTHS AMOUNTING TO RS.35,530/- BY TREATING THE PAYMENT DATE AS 10.07.2007 INSTEAD OF 07.07.2007. 3. SIMILARLY, IN AY 2015-16, AO AFTER NOTICING THAT AS AGAINST THE DUE DATE OF DEPOSITING OF TAX AS 07.07.2014, TH E DEPARTMENT RECEIVED THE PAYMENT ON 08.07.2014 AND THEREBY CHAR GED THE INTEREST AS PER SECTION 201(1A) OF THE INCOME-TAX A CT, 1961 (FOR SHORT THE ACT) TO THE TUNE OF RS.10,65,320/-. 4. ASSESSEE CARRIED THE MATTER BY WAY OF APPEALS BE FORE THE LD. CIT (A) WHO HAS CONFIRMED THE ORDERS PASSED BY THE AO BY PARTLY ALLOWING THE APPEALS. FEELING AGGRIEVED, THE ASSES SEE HAS COME UP BEFORE THE TRIBUNAL BY WAY OF FILING THE PRESENT AP PEALS. 5. WE HAVE HEARD THE LD. AUTHORIZED REPRESENTATIVES OF THE PARTIES TO THE APPEAL, GONE THROUGH THE DOCUMENTS R ELIED UPON AND ORDERS PASSED BY THE REVENUE AUTHORITIES BELOW IN T HE LIGHT OF THE FACTS AND CIRCUMSTANCES OF THE CASE. 6. UNDISPUTEDLY, IN AY 2008-09, THE ASSESSEE DEPOSI TED THE TDS ON 07.07.2007 WHICH WAS CREDITED INTO THE ACCOU NT OF REVENUE ON 10.07.2007 AS AGAINST DUE DATE OF 07.07. 2007. IT IS ALSO NOT IN DISPUTE THAT AO BY DECLINING THE CONTEN TIONS RAISED BY THE ASSESSEE THAT THE DATE OF DEPOSIT IS TO BE TAKE N AS 07.07.2007, ITA NO.3637 & 3638/DEL./2016 4 RAISED A DEMAND OF TWO MONTHS AMOUNTING TO RS.35,53 2/- BY TREATING THE PAYMENT DATE AS 10.07.2007 INSTEAD OF 07.07.2007. 7. LD. AR FOR THE ASSESSEE BY RELYING UPON THE DECI SION RENDERED BY THE COORDINATE BENCH OF THE TRIBUNAL IN SANDIP BHAGAT VS. ACIT (2017) 88 TAXMANN.COM 356 (DELHI TRIB.) CONTENDED THAT THE DATE OF DEPOSITING THE TDS WITH THE STATE EXCHEQUER IS TO BE TAKEN AS 07.07.2007, THE DATE OF DEPOSITING THE CHEQUE AS THE ASSESSEE WAS HAVING SUFFICIENT FUNDS IN HIS ACCOUNT. COORDINATE BENCH OF THE TRIBUNAL BY RELYING UPON NU MEROUS DECISION RENDERED BY THE COORDINATE BENCH OF THE TR IBUNAL AS WELL AS HONBLE SUPREME COURT IN CASE CITED AS DIT (EXEMPTION) VS. RAUNAQ EDUCATION FOUNDATION (2013) 350 ITR 420 REACHED TO THE CONCLUSION THAT WHEN THE CHEQUES ISSUED HAVE NO T BEEN DISHONOURED THE PAYMENT IS TO RELATE BACK TO THE DA TE OF RECEIPT OF THE CHEUQE. CONSEQUENTLY, FOLLOWING THE DECISION R ENDERED BY THE COORDINATE BENCH OF THE TRIBUNAL IN CASE CITED AS SANDIP BHAGAT VS. ACIT (SUPRA) WHICH IS BASED UPON THE DECISION RENDERED BY HONBLE APEX COURT IN DIT (EXEMPTION) VS. RAUNAQ EDUCATION FOUNDATION (SUPRA), WE ARE OF THE CONSIDERED VIEW THAT WHEN T HE ASSESSEE HAS DEPOSITED THE CHEQUE ON ACCOUNT OF TDS ON 07.07.2007 AND UNDISPUTEDLY, SUFFICIENT FUNDS WERE THERE IN ITS ITA NO.3637 & 3638/DEL./2016 5 ACCOUNT, THE PAYMENT HAS TO RELATE BACK TO THE DATE OF PRESENTATION OF THE CHEQUE AND NOT TO THE DATE OF ITS REALIZATIO N I.E. 10.07.2007. 8. SO, THE DATE OF DEPOSITING THE CHEQUE DATED 07.0 7.2007 IS TO BE TREATED AS DATE OF TAX PAYMENT FOR THE PURPOSE O F DEPOSITING THE TDS AND NO FURTHER INTEREST HAS TO BE CHARGED. SO, THE INTEREST, IF ANY, IS TO BE CHARGED FROM THE DATE OF PRESENTATION OF THE CHEQUE QUA TAX PAYMENT. CONSEQUENTLY, GROUND NO.1 OF AY 2 008-09 IS DETERMINED IN FAVOUR OF THE ASSESSEE. 9. LIKEWISE, IN APPEAL FOR AY 2015-16, THE ASSESSEE DEPOSITED THE TDS FOR THE QUARTER ENDING 30.06.2014 ON 07.07. 2014 THROUGH ONLINE BANKING CHANNEL BUT WAS DEBITED FROM THE BAN K ACCOUNT OF THE ASSESSEE ON 08.07.2014, AO AS WELL AS CIT (A) T AKEN THE VIEW THAT WHEN THE AMOUNT WAS CREDITED IN THE ACCOUNT OF STATE EXCHEQUER ON 08.07.2014, INTEREST FOR THE DELAY OF 2 MONTHS AS PER SECTION 201(1A) IS TO BE CHARGED AND THEREBY RAISED THE DEMAND OF RS.10,65,320/-. 10. AGAIN, THE LD. AR FOR THE ASSESSEE CONTENDED TH AT WHEN THE PAYMENT OF TDS WAS MADE ON 07.07.2014 THROUGH BANKI NG CHANNEL ON THE BASIS OF SUFFICIENT FUNDS IN ITS ACCOUNT, TH E SAME IS TO BE TREATED AS DEPOSITED ON 07.07.2014 ITSELF AND RELIE D UPON THE DECISION RENDERED BY THE COORDINATE BENCH OF THE TR IBUNAL IN CASE ITA NO.3637 & 3638/DEL./2016 6 CITED AS P.L. HAULWEL TRAILERS LTD. VS. DCIT (2006) 100 IT D 0485. 11. COORDINATE BENCH OF THE TRIBUNAL, AFTER DISCUSS ING VARIOUS DECISIONS RENDERED BY HONBLE HIGH COURTS AS WELL A S HONBLE SUPREME COURT, SPECIFICALLY RELIED UPON THE DECISIO N RENDERED BY HONBLE APEX COURT IN CASE CITED AS K. SARASWATHY VS. P.S.S. SOMASUNDARAM CHETTIAR (1989) 4 SCC 587 WHEREIN IT IS HELD THAT PAYMENT BY CHEQUE SHOULD BE TAKEN AS DUE PAYME NT IF THE CHEQUE IS SUBSEQUENTLY ENCASHED IN THE ORDINARY COU RSE. IN THE INSTANT CASE, UNDISPUTEDLY, THE ASSESSEE HAS MADE O NLINE PAYMENT OF TDS DUE FOR THE QUARTER ENDING 30.06.2014 ON 07. 07.2014 WHICH WAS TREATED HAVING BEEN PAID ON 08.07.2014, THE DAT E OF DEBITING THE SAID AMOUNT FROM THE ACCOUNT OF THE ASSESSEE. 12. WHEN THE ASSESSEE HAS MADE PAYMENT OF TDS ON 07 .07.2014 BY WAY OF ONLINE PAYMENT AND THE SAME WAS DEBITED F ROM HIS ACCOUNT ON 07.07.2014, THE SAME IS TO RELATE BACK W ITH DATE OF ONLINE PAYMENT I.E. 07.07.2014 AND NOT 08.07.2014, AS ONLINE PAYMENT IS ON BETTER FOOTING THAN PAYMENT MADE BY C HEQUE AS HAS BEEN DISCUSSED BY HONBLE APEX COURT IN K. SARASWATHY VS. P.S.S. SOMASUNDARAM CHETTIAR (SUPRA). 13. SO, FOLLOWING THE DECISION RENDERED BY HONBLE APEX COURT IN K. SARASWATHY VS. P.S.S. SOMASUNDARAM CHETTIAR (SUPRA) AS ITA NO.3637 & 3638/DEL./2016 7 WELL AS THE DECISION RENDERED BY THE COORDINATE BEN CH OF THE TRIBUNAL IN P.L. HAULWEL TRAILERS LTD. VS. DCIT (SUPRA), WE ARE OF THE CONSIDERED VIEW THAT THE ASSESSEE HAS MADE PAYM ENT OF TDS FOR THE QUARTER ENDING ON THE DUE DATE AND NO INTER EST IS TO BE CHARGED. CONSEQUENTLY, GROUND NO.1 OF AY 2015-16 I S DETERMINED IN FAVOUR OF THE ASSESSEE. 14. RESULTANTLY, BOTH THE APPEALS FILED BY THE ASSE SSEE ARE ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THIS 21 ST DAY OF DECEMBER, 2018. SD/- SD/- (O.P. KANT) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 21 ST DAY OF DECEMBER , 2018 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-41, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.