Anjali Promoters and Developers Pvt. Ltd., New Delhi V. DCIT (TDS)- CPC, Ghaziabad

ITA 4476/DEL/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9305 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 22-08-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VED PRAKASH MISHRA
• Assessee Lawyers: AJAY BHAGWANI
• Keywords: Reasonable cause; TDS

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI A BEN CH, NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER, AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA NO. 4476/DEL/2016 [ASSESSMENT YEAR: 2011-12] ANJALI PROMOTERS & DEVELOPERS PVT LTD VS. T HE DCIT [TDS] M 11, MIDDLE CIRCLE CPC CONNAUGHT CIRCUS GHAZIABAD NEW DELHI PAN: AAECA 2785 M [APPELLANT] [RESPONDENT] DATE OF HEARING : 09.01.2020 DATE OF PRONOUNCEMENT : 10.01.2020 ASSESSEE BY : SHRI AJAY BHAGWANI, CA REVENUE BY : SHRI VED PRAKASH MISHRA, SR. DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX [APPEALS] - 41, NEW DELH I DATED 10.05.2016 PERTAINING TO ASSESSMENT YEAR 2011-12. 2 2. THE FIRST GRIEVANCE OF THE ASSESSEE RELATES TO C HARGING OF INTEREST U/S 201(1A) OF THE INCOME TAX ACT, 1961 [H EREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] AMOUNTING TO RS . 7,602/- FOR LATE DEPOSIT OF TDS. 3. FACTS RELATING TO THIS ISSUE SHOW THAT TDS DEDUC TED IN THE MONTH OF NOVEMBER 2010 WAS REQUIRED TO BE DEPOS ITED ON OR BEFORE 07.12.2010. HOWEVER, BECAUSE OF INCOME T AX SEARCH AT THE PREMISES OF THE ASSESSEE, THE ASSESSE E CLAIMED TO HAVE BEEN HELD UP IN THE SEARCH PROCEEDINGS AND, THEREFORE, COULD NOT DEPOSIT THE TAX DEDUCTED AT SO URCE ON OR BEFORE THE DUE DATE. 4. BEFORE US ALSO, THE LD. COUNSEL FOR THE ASSESSEE REITERATED AND CONTENDED THAT THERE WAS REASONABLE CAUSE FOR DELAY IN DEPOSITING THE TAX. IN OUR CONSIDERED OPINION, CHARGING OF INTEREST U/S 201(1A) OF THE ACT IS MAND ATORY IN NATURE AND THERE IS NO PROVISION OF WAIVER OF THE S AME. THE INTEREST IS CHARGED AUTOMATICALLY AND THERE IS NO Q UESTION OF ANY REASONABLE CAUSE. WE, THEREFORE, DO NOT FIND A NY MERIT 3 IN THE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSES SEE. ADDITION OF RS. 7,602/- IS CONFIRMED. 5. SECOND GRIEVANCE RELATES TO CHARGING OF INTEREST OF RS. 13,098/- U/S 201(1A) OF THE ACT. 6. FACTS RELATING TO THIS ISSUE ARE THAT THE DUE DA TE FOR DEPOSIT OF TDS WAS 07.1.2011 AND THE ASSESSEE DID D EPOSIT THE TDS ON THE DUE DATE WHICH IS EVIDENT FROM THE C OPY OF BANK STATEMENT. INTEREST HAS BEEN LEVIED BECAUSE O N OLTAS THE TAX HAS BEEN SHOWN AS DEPOSITED ON 08.01.2011 R ESULTING INTO AUTOMATIC LEVY OF INTEREST. 7. IN OUR CONSIDERED OPINION, WHEN THE PAYMENTS HAV E BEEN ELECTRONICALLY MADE ON 07.01.2011, WHICH IS THE DUE DATE AND THE MONEY HAS FLOWN FROM THE BANK ACCOUNT OF THE AS SESSEE, IT SHOULD NOT MAKE ANY DIFFERENCE WHEN THE SAME WAS SHOWN AS CREDITED ON OLTAS. ON THESE FACTS, WE ARE OF TH E VIEW THAT THE ASSESSEE HAS DEPOSITED TAX ON OR BEFORE TH E DUE DATE. THEREFORE, THE ASSESSING OFFICER IS DIRECTED TO DELETE THE ADDITION OF RS. 13.098/- 4 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IN ITA NO. 4476/DEL/2016 IS PARTLY ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 10.01 .2020. SD/- SD/- (BHAVNESH SAINI) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 10 TH JANUARY, 2020. VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT ASST. REGISTRAR 4. CIT(A) ITAT, NEW DELHI 5. DR 5 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P S/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER