OIL AND NATURAL GAS CORPORATION LTD, ENGINEERING SERVICES, MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX CENTRALIZED PROCESSING CELL (TDS), MUMBAI

ITA 5396/MUM/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 1113 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 21-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V VIDHYADHAR
• Assessee Lawyers: RAJESH SIMHAN; ASHISH SODHANI A R S
• Section: 10; 154

Judgement Text

P A G E | 1 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX IN THE INCOME TAX APPELLATE TRIBUNAL ' C ' BENCH, MUMBAI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER ITA NOS. 5394 TO 5398/MUM/2017 (ASSESSMENT YEAR: 2008 - 09 ) OIL AND NATURAL GAS CORPORATION LIMITED, ENGINEERING SERVICES, MUMBAI. VS. DEPUTY COMMISSIONER OF INOCME TAX, CENTRALIZED PROCESSING CELL (TDS) AAYAKAR BHAWAN, VAISHALI, GAZIABAD. PAN AAACO1598A ( APPELLANT ) ( RESPONDENT ) APPELLANT BY: SHRI RAJESH SIMHAN & SHRI ASHISH SODHANI, A.R S RESPONDENT BY: SHRI V.VIDHYADHAR D.R DATE OF HEARING: 27 .11.2018 DATE OF PRONOUNCEMENT: 30 . 11.2018 O R D E R PER BENCH, THE PRESENT APPEALS FILED BY THE ASSESSEE FOR A.Y 2008 - 09 ARE DIRECTED AGAINST THE RESPECTIVE ORDERS OF THE CIT(A) - 60, MUMBAI, DATED 08.05.2017, WHICH IN TURN ARISES FROM VIZ. (I). THE INTIMATION UNDER SEC. 200A OF THE INCOME TAX ACT, 1961 (FOR SHORT ACT) FOR THE 1 ST QUARTER, DATED 04.03.2015; (II). THE INTIMATION UNDER SEC. 154 OF THE ACT FOR THE 1 ST QUARTER, DATED 0 6 .03.2015; (III). THE INTIMATION UNDER SEC. 154 OF THE ACT FOR THE 2 ND QUARTER, DATED 06.03.2015 ; (IV). THE INTIMATION UNDER SEC. 154 O F THE ACT FOR THE 3 RD QUARTER, DATED 0 6 .03.2015; AND (V). THE INTIMATION UNDER SEC. 154 OF THE ACT FOR 4 TH QUARTER, DATED 0 6 .03.2015, PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRALISED PROCESSING CELL - (TDS), CPC, GHAZIABAD [FOR SHORT DCIT, CPC - (TDS)] . T HAT AS A COMMON ISSUE INVOLVING IDENTICAL P A G E | 2 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX FACTS IS INVOLVED IN THE AFOREMENTIONED APPEALS, THEREFORE, THE SAME ARE BEING TAKEN UP AND DISPOSED OFF BY WAY OF A CONSOLIDATE ORDER. WE SHALL FIRST ADVERT TO THE APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT( A) , WHICH IN TURN ARISES FROM THE INTIMATION OF THE DCIT, CPC - (TDS) UNDER SEC. 200A IN RESPECT OF THE FIRST QUARTER OF A.Y. 2008 - 09. THE ASSESSEE ASSAILING THE ORDER OF THE CIT(A) HAS RAISED BEFORE US THE FOLLOWING GROUNDS OF APPEAL : 1. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 60, MUMBAI, HAS ERRED IN LAW AND IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN UPHOLDING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME - TAX - CPC (TDS). WHEREIN OIL AND NATURAL GAS CORPORATION LIMITED WAS HELD AS ASSESSEE IN DEFAULT FOR ALLEGED DELAYED DEPOSIT, OF TDS AND INTEREST WAS LEVIED UNDER SECTION 201(1A) OF THE INCOME TAX ACT, 1961. 2. THE APPELLANT CRAVES PERMISSION TO ADD, ALTER AND/OR AMEND ANY GROUND(S) OF APPEAL BEFORE OR AT THE TIME OF HEARI NG. 2. BRIEFLY STATED, THE ASSESSEE VIZ. M/S OIL & NATURAL GAS CORPORATION LTD. (FOR SHORT ONGC) IS A G OVERNMENT P UBLIC L IMITED C OMPANY REGISTERED UNDER THE C OMPANIES ACT, 1956. THE ASSESSEE COMPANY HAD DURING THE YEAR UNDER CONSIDERATION VIZ. A.Y. 200 8 - 09 FOLLOWED THE DECENTRALIZED MECHANISM FOR DEDUCTION OF TAX AT SOURCE. ACCORDINGLY, THE ASSESSEE REGULARLY DEDUCTED AND DEPOSITED TAX AT SOURCE UNDER THE VARIOUS SECTIONS OF THE INCOME TAX ACT, WHICH THEREAFTER WAS FOLLOWED BY FILING OF E - TDS RETURNS/STATEMENTS. THE ASSESSEE HAD FILED AN OFFLINE E - TDS RETURN ON 14.07.2007 IN F ORM NO. 27 Q FOR THE FIRST Q UARTER OF THE FINANCIAL YEAR 2007 - 08, WHICH WAS PROCESSED BY THE TDS RECONCILIATION ANALYSIS AND CORRECTION ENABLING SYSTEM (FOR SHORT T RACES ), GHAZIABAD ON 04.03.2015. ON THE BASIS OF AN INTIMATION UNDER SEC. 200A INTEREST OF RS. 37,510/ - O N LATE PAYMENT OF TDS WAS CHARGED IN THE HANDS OF THE ASSESSEE. ON THE BASIS OF AN ONLINE JUSTIFICATION REPORT OBTAINED BY THE ASSESSEE FROM TRACES , IT WAS OBSERVED BY THE ASSESSEE THAT INTEREST OF RS. 37,510/ - WAS LEVIED UNDER SEC. 201(1A) FOR LATE DEPOSIT OF TDS @ 1% P A G E | 3 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX FOR EVERY MONTH OR PART OF A MONTH , ON THE AMOUNT OF SUCH TAX , FROM THE DATE ON WHICH SUCH TAX WAS DEDUCTIBLE TILL THE DATE ON WHICH S UCH TAX WAS ACTUALLY PAID. 3. AGGRIEVED, THE ASSESSEE ASSAILED THE LEVY OF INTEREST UNDER SEC. 201(1A) IN APPEAL BEFORE THE CIT(A). IT WAS THE CONTENTION OF THE ASSESSEE BEFORE THE CIT(A) THAT THOUGH THE CHEQUE TOWARDS PAYMENT OF TDS WAS TENDERED ON 04.07.2007 TO THE BANK I.E STATE BANK OF INDIA , BRANCH: B ANDRA KURLA COMPLEX , MUMBAI WELL WITH IN THE STIPULATED DUE DATE I.E PRIOR TO 07.07.2007 , HOWEVER THE BANK HAD DELAYED THE REMITTANCE OF THE AMOUNT TO THE G OVERNMENT A CCOUNT. IT WAS SUBMITTED BY THE ASSESSEE THAT THE DCIT - CPC(TDS), GHAZIABAD CONSIDERING THE DELAY ON THE PART OF THE BANK AS THE DELAY IN PAYMENT OF TDS BY THE ASSESSEE , HAD THUS WRONGLY LEVIED INTEREST UNDER SEC. 201(1A) BY WAY OF A N INTIMATION UNDER SEC. 200A OF THE ACT. HOWEVER, TH E CIT(A) AFTER DELIBERATING ON THE CONTENTIONS OF THE ASSESSEE WAS NOT PERSUADED TO SUBSCRIBE TO THE SAME AND TREATING THE ASSESSEE AS BEING IN DEFAULT FOR NOT DEPOSITING THE AMOUNT OF TDS WITHIN THE STIPULATED TIME PERIOD , UPHELD THE ORDER OF THE A.O . 4 . THE ASSESSEE BEING AGGRIEVED WITH THE ORDER OF THE CIT(A) HAS CARRIED THE MATTER IN APPEAL BEFORE US. THE LD. AUTHORIZED REPRESENTATIVE (FOR SHORT A.R) FOR THE ASSESSEE AT THE VERY OUTSET OF THE HEARING OF THE APPEAL SUBMITTED THAT THE ASSESSEE HAD TEN DERED THE CHEQUE TOWARDS PAYMENT OF TDS TO STATE BANK OF INDIA, BRANCH : BANDRA KURLA COMPLEX, MUMBAI ON 04.07.2007 I.E. WELL BEFORE THE STIPULATED DUE DATE I.E. 07.07.2007. IN SUPPORT OF HIS AFORESAID CONTENTION THE LD. A.R TOOK US THROUGH A CONSOLIDATE C HART WHEREIN THE RESPECTIVE DATES O F TENDERING OF TH E CHEQUES BY THE ASSESSEE TO THE BANK IN RESPECT OF ALL THE FOUR QUARTERS FOR THE YEAR UNDER CONSIDERATION , ALONG WITH A MENTION OF THE RESPECTIVE DUE DATE S STOOD P A G E | 4 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX REFLECTED. IT WAS THE CONTENTION OF THE LD. A.R THAT AS PER CBDT CIRCULAR NO. 261 [F.NO.385/61/79 - IT (B)], DATED 08.08.1979 IN TERMS OF RULE 80 OF TH E COMPILATION OF THE TREASURY RULES, IF A CHEQUE OR A DRAFT TENDERED IN PAYMENT OF G OVERNMENT D UES AND ACCEPTED UNDER THE PROVISIONS OF RULE 79 IS HONOURED ON PRESENTATION, THEN THE PAYMENT IS TO BE DEEMED TO HAVE BEEN MADE ON THE DATE ON WHICH IT WAS HANDED OVER TO THE G OVERNMENT B ANKERS. IT WAS AVERRED BY THE LD. A.R. THAT THE AFORESAID CBDT CIRCULAR NO. 261, DATED 08.0 8.1979 HAD NOT BEEN WITHDRAWN AND HOLDS THE GROUND AS ON DATE. FURTHER, IN ORDER TO BUTTRESS HIS AFORESAID CONTENTION THE LD. A.R TOOK SUPPORT OF SEC. 10 R.W.S. 82(C) OF THE NEGOTIABLE INSTRUMENTS ACT, 1881, WHICH THEREIN INTER ALIA CONTEMPLATE S DISCHARGE FROM LIABILITY OF C HEQUES. IT WAS THE CONTENTION OF THE LD. A.R , THAT AS PER SEC. 82(C) OF THE NEGOTIABLE INSTRUMENTS ACT, 1881 THE MAKER /DRAWER OF A CHEQUE WOULD STAND DISCHARGED FROM LIAB ILITY BY PAYMENT TO A PARTY, IF SUCH MAKER THEREON MAKES THE PAYMENT OF THE AMOUNT IN DUE COURSE . THE LD. A.R TAKING SUPPORT OF HIS AFORESAID CONTENTIONS SUBMITTED THAT AS THE ASSESSEE HAD TENDERED THE CHEQUE TOWARDS PAYMENT OF TDS WELL WITHIN THE STIPULATED TIME PERIOD I.E. ON 04.07.2007, THEREFORE, IT COULD SAFELY BE HELD TO HAVE BEEN DISCHARGED FROM ITS LIABILITY IN RESPECT OF DEPOSITING OF THE TDS WITH THE G OVERNMENT EXCHEQUER, AS THE SAID PAYMENT WAS SUBSEQUENTLY CLEARED IN DUE COURSE. THE LD. A.R IN ORDER TO DRIVE HOME HIS AFORESAID CONTENTION ALSO TOOK SUPPORT OF THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE CASE OF K. KAPLANA SARASWAT HI VS. P.S.S. SOMASUNDRAM CHETTIAR 1980 AIR 512 (SC) . 5. PER CONTRA, THE LD. DEPARTMENTAL REPRESENTATIVE (FOR SHORT D.R) RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. IT WAS SUBMITTED BY THE LD. D.R THAT AS THE AMOUNT OF TDS WAS DEPOSITED ON 12.07.2007 I.E BEYOND THE STIPULATED DUE DATE OF 07 .07.2007, THEREFORE, THE A.O HAD P A G E | 5 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX RIGHTLY LEVIED INTEREST FOR THE DELAY INVOLVED UNDER SEC. 201(1A) OF THE ACT. 6. WE HAVE HEARD TH E AUTHORIZED REPRESENTATIVES OF BOTH THE PARTIES, PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND THE MATERIAL AVAILABLE ON RECORD. THE ISSUE INVOLVED IN THE PRESENT APPEAL LIES IN A NARROW COMPASS. WE FIND THAT OUR INDULGENCE IN THE PRESENT APPEAL HAS BEE N SOUGHT BY THE ASSESSEE TO ADJUDICATE AS TO WHETHER THE CIT(A) IS RIGHT IN LAW AND THE FACTS OF THE CASE IN TREATING THE ASSESSEE AS BEING IN DEFAULT FOR DELAY IN DEPOSIT OF TDS , THOUGH THE CHEQUE TOWARDS THE AMOUNT OF TDS WAS TENDERED BY THE ASSESSEE TO THE GOVERNMENT B ANK WITHIN THE STIPULATED TIME PERIOD. WE HAVE DELIBERATED AT LENGTH ON THE ISSUE UNDER CONSIDERATION , AND FIND THAT THAT AS PER CBDT CIRCULAR NO. 261 [F.NO. 385/61/79 - IT (B)], DATED 08.08.1979, IT HAS BEEN CLARIFIED THAT THE DATE O F TENDER ING OF CHEQUE FOR PAYMENT OF G OVERNMENT DUES SHALL BE DEEMED TO BE THE DATE OF PAYMENT OF SUCH TAXES. WE FIND THAT THE AFORESAID CBDT CIRCULAR IS APPLICABLE TO ALL G OVERNMENT DUES, AND MAKES NO DISTINCTION WHETHER THE PAYMENT IS BY WAY OF TDS, ADVANCE TAX, SELF - ASSESSMENT TAX ETC. THE RELEVANT EXTRACT OF THE AFORESAID CBDT CIRCULAR NO. 261, DATED 08.08.1979 READS AS UNDER: 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 PROVISIONS OF RULE 79 IS HONOURED ON PRESENTATION, THE PAYMENT IS DEEMED TO HAVE BEEN MADE ON THE DATE ON WHICH IT WAS HANDED OVER TO THE GOVERNMENT BANKER.... ON A PERUSAL OF THE ORDER OF THE CIT(A), WE FIND THAT HE HAD DECLINED TO ACCEPT THE AFORESAID CBDT CIRCULAR NO. 261, DATED 08.08.1979 , FOR THE REASON THAT AS PER HIM THE CENTRAL TREASURY RULES (OLD RULES) HAD BEEN SUBSTITUTED BY THE CENTRAL GOVERNMENT ACCOUNT (RECEIPTS AND P A G E | 6 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX PAYMENTS) RULES, 1983 WHICH THEREIN GOVERNED THE PROVISIONS O F PAYMENT OF GOVERNMENT DUES. THE CIT(A) DRAWING SUPPORT FROM THE CENTRAL GOVERNMENT ACCOUNT (RECEIPTS AND PAYMENTS) RULES, 1983 , HAD THEREIN CONCLUDED THAT AS PER THE AMENDED RULES THE G OVERNMENT DUES TENDERED IN F ORM OF A CHEQUE OR DRAFT SHALL BE DEEMED TO HAVE BEEN PAID ON THE DATE ON WHICH IT IS CLEARED AND ENTERED IN THE RECEIPT OF SCROLL. ADMITTEDLY, WE ARE IN AGREEMENT WITH THE VIEW TAKEN BY THE CIT(A) THAT THE CENTRAL TREASURY RULES (OLD RULES) HAD BEEN SUBSTITUTED BY THE CENTRAL GOVERNMENT ACCOU NT (RECEIPTS AND PAYMENTS) RULES, 1983 , AS PER WHICH THE DATE ON WHICH A CHEQUE OR A DRAFT IS CLEARED IS TO BE DEEMED AS THE DATE OF MAKING OF THE PAYMENT BY A PERSON TOWARDS GOVERNMENT DUES ETC. HOWEVER, AT THE SAME TIME WE CANNOT REMAIN OBLIVIOUS OF THE FACT THAT THE CBDT CIRCULAR NO. 261[F.NO.385/61/79 - IT(B)], DATED 08.08.1979 HAD NOT BEEN WITHDRAWN , AND AS SUCH HOLDS THE GROUND AS ON DATE. RATHER, IT WOULD BE RELEVANT TO POINT OUT THAT THE CBDT IN ALL ITS WISDOM HAD NOT EVEN MODIFIED THE CIRCULAR NO. 2 61, DATED 08.08.1979 WHICH WAS ISSUED PRIOR TO THE CENTRAL GOVERNMENT ACCOUNT ( R ECEIPT AND P AYMENTS) RULES, 1983 . BE THAT AS IT MAY, THE AFORESAID BENEVOLENT CIRCULAR VIZ. CIRCULAR NO. 261, DATED 08.08.1979 ISSUED BY THE CBDT ON THE DATE OF TENDERING O F THE CHEQUE BY THE ASSESSEE TOWARDS THE AMOUNT OF TDS TO THE GOVERNMENT BANK, DID HOLD THE GROUND AND WAS THUS B INDING ON THE REVENUE. WE ARE UNABLE TO PERSUADE OURSELVES TO SUBSCRIBE TO THE OBSERVATIONS OF THE CIT(A) , THAT AS THE CENTRAL TREASURY RULES ( OLD RULES) HAD BEEN RENDERED AS REDUNDANT, THEREFORE, THE CBDT CIRCULAR NO. 261, DATED 08.08.1979 WOULD THEREIN FOLLOW AND ALSO HAS TO BE TAKEN AS HAVING BEEN RENDERED AS OTIOSE. 7. WE SHALL NOW ADVERT TO CERTAIN JUDICIAL PRONOUNCEMENT S WHICH FORTIFIES THE CLAIM OF THE LD. A.R THAT THE ASSESSEE STOOD DISCHARGED OF P A G E | 7 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX ITS LIABILITY OF DEPOSIT ING THE TDS ON THE DATE ON WHICH IT HAD TENDERED THE CHEQUE WITH THE GOVERNMENT BANK. WE FIND THAT THAT HONBLE SUPREME COURT IN THE CASE OF K. KAPLANA SARASWATHI VS. P.S.S. SOMASUNDRAM CHETTIAR 1980 AIR 512 (SC) HA S HELD THAT PAYMENT BY CHEQUE SHOULD BE TAKEN TO BE DUE PAYMENT , IF THE CHEQUE IS SUBSEQUENTLY ENCASHED IN THE ORDINARY COURSE. FURTHER, THE HONBLE HIGH COURT OF MADRAS IN CIT VS. KUMUDAM PUBLICATIONS (P) LT D. (1981) (281 ITR 617) (MAD) AFTER DELIBERATING ON THE TREASURY RULES , HAD THEREIN CONCLUDED THAT IN VIEW OF TREASURY RULES WHEN CHEQUES ARE HANDED OVER TO THE GOVERNMENT OFFICIALS OR TO THE GOVERNMENT OFFICER AUTHORISED TO RECEIVED PAYMENT ON BEHALF OF T HE GOVERNMENT, PAYMENT WOULD BE DEEMED TO HAVE BEEN MADE ON THE DATE THE CHEQUE WAS HANDED OVER. WE FIND THAT A COORDINATE BENCH OF THE TRIBUNAL VIZ. ITAT CHENNAI IN THE CASE OF P.L. HAULWEL TRAILERS LTD. VS. DCIT ( 2006) 100 ITD 485 (CHENNAI) WHILE DELIBER ATING ON THE LEVY OF INTEREST UNDER SEC. 234C OF THE ACT, HAD OBSERVED THAT AS THE ASSESSEE HAD PAID ADVANCE TAX BY DEPOSIT ING THE CHEQUES WITH THE AUTHORIZED BANKS WITHIN THE DUE DATE, THEREFORE, THE DATE OF PAYMENT WAS TO BE TAKEN AS THE DATE OF PRES ENTATION OF THE CHEQUES BY THE ASSESSEE. THE TRIBUNAL HAD ARRIVED AT THE AFORESAID VIEW AFTER CONSIDERING VIZ. (I) CBDT CIRCULAR NO. 261, DATED 08.08.1979; (II) CENTRAL GOVERNMENT ACCOUNT (RECEIPTS & PAYMENTS) RULES, 1983; AND (III) THE JUDGMENT OF THE HON BLE SUPREME COURT IN THE CASE OF K. KAPLANA SARASWATHI VS. P.S.S. SOMASUNDRAM CHETTIAR 1980 AIR 512 (SC) . STILL FURTHER, THE ITAT, BANG A LORE IN ITO VS. BRADCOM COMMUNICATION TECHNOLOGIES (P ) LTD. [ ITA NO. 895 & 900/2014 ] HAD OBSERVED THAT WHERE THE ASSE SSEE HAD MADE THE PAYMENT BEFORE THE DUE DATE , IT WAS THEREAFTER BEYOND ITS CONTROL TO ENSURE THE TRANSMISSION OF THE AMOUNT TO THE G OVERNMENT A CCOUNT WITHIN THE STIPULATED DUE DATE. ON THE BASIS OF THE AFORESAID OBSERVATIONS , IT WAS HELD BY THE TRIBUN AL THAT THE P A G E | 8 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX ASSESSEE COULD NOT BE FAULTED FOR DELAY ON THE PART OF THE BANK OR THE CLEARING HOUSE, WHATEVER MAY BE THE R ULES G OVERNING RECEIPTS AND PAYMENTS INTO THE CENTRAL GOVERNMENT ACCOUNT. WE FIND THAT A SIMILAR VIEW WAS ALSO TAKEN BY THE ITAT, KOLKATA IN NHAI, PIU SILIGUR I VS. ACIT [ ITA NO. 2296/KOL/2013 ] . IN THE SAID CASE THOUGH THE ASSESSEE HAD DEPOSITED THE TDS AMOUNT BEFORE THE DUE DATE , BUT CREDIT WAS GIVEN BY THE BANK AFTER THE SAID DUE DATE . ON THE BASIS OF THE SAID FACTS, THE A.O CON SIDERING THE DELAY IN DEPOSITING OF THE TDS CHARGED INTEREST UNDER SEC. 201(1A). ON APPEAL , THE TRIBUNAL AFTER CONSIDERING THE CENTRAL GOVERNMENT ACCOUNT ( R ECEIPTS AND P AYMENTS) RULES, 1983 AND THE CBDT CIRCULAR NO. 261, DATED 08.08.1979, CONCLUDED THAT WH ERE THE CHEQUE WAS DEPOSITED WITH A BANK BEFORE THE 7 TH DAY OF THE MONTH FOLLOWING THE MONTH IN WHICH TDS WAS DEDUCTED, NO INTEREST COULD BE CHARGED. 8. WE HAVE DELIBERATED AT LENGTH ON THE ISSUE UNDER CONSIDERATION BEFORE US IN THE BACKDROP OF THE FACTS AND THE AFORESAID JUDICIAL PRONOUNCEMENT S . IN TERMS OF OUR AFORESAID OBSERVATIONS , WE ARE OF THE CONSIDERED VIEW THAT AS THE ASSESSEE HAD ADMITTEDLY TENDERED THE CHEQUE WITH THE BANK I.E. STATE BANK OF INDIA , BRANCH: B ANDRA KURLA COMPLEX , MUMBAI WELL WITHI N THE STIPULATED DUE DATE, THEREFORE, IT CANNOT BE HELD AS BEING IN DEFAULT FOR THE DELAY ON THE PART OF THE B ANK OR THE CLEARING HOUSE IN MAKING THE REMITTANCE OF THE SAID AMOUNT TO THE GOVERNMENT ACCOUNT. W E THUS IN THE BACKDROP OF OUR AFORESAID DELIBERATIONS, NOT BEING ABLE TO PERSUADE OURSELVES TO SUBSCRIBE TO THE VIEW TAKEN BY THE LOWER AUTHORITIES THAT THE ASSESSEE WAS TO BE TREATED AS BEING IN DEFAULT FOR DELAY IN DEPOSIT OF THE AMOUNT OF TDS, THUS SET AS IDE THE ORDER OF THE CIT(A) AND DELETE THE INTEREST OF RS. 37,510/ - LEVIED BY THE A.O UNDER SEC. 201(1A) OF THE ACT . 9. THE APPEAL OF THE ASSESSEE IS ALLOWED. P A G E | 9 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX ITA NO. 5395/MUM/2017 A.Y. 2008 - 09 10. WE SHALL NOW ADVERT TO THE APPEAL FILED AGAINST THE ORDER OF THE CIT(A) ARISING FROM THE INTIMATION OF THE DCIT, CPC - (TDS) UNDER SEC. 154 IN RESPECT OF THE FIRST QUARTER OF A.Y. 2008 - 09. THE ASSESSEE ASSAILING THE ORDER OF THE CIT(A) HAS RAISED BEFORE US THE FOLLOWING GROUNDS OF APPEAL : 1. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 60, MUMBAI, HAS ERRED IN LAW AND IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN UPHOLDING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME - TAX - CPC (TDS), WHEREIN OIL AND NATURAL GAS CORPORATION LIMITED W AS HELD AS ASSESSEE IN DEFAULT FOR ALLEGED DELAYED DEPOSIT OF TDS AND INTEREST WAS LEVIED UNDER SECTION 201(1A) OF THE INCOME - TAX ACT, 1961. 2. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 60, MUMBAI, HAS ERRED IN LAW AND IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN UPHOLDING THE CHARGE OF INTEREST UNDER SECTION 220 (2) OF THE INCOME - TAX ACT, 1961. 3. THE APPELLANT CRAVES PERMISSION TO ADD, ALTER AND/OR AMEND ANY GROUND(S) OF APPEAL BEFORE OR AT THE TIME OF HEARING. 11. BRIEFLY STATED, THE ASSESSEE HAD FILED AN OFFLINE RECTIFICATION ON 04.03.2015 IN FORM NO. 26 FOR THE FIRST QUARTER OF THE FINANCIAL YEAR 2007 - 08, WHICH WAS PROCESSED BY THE TDS RECONCILIATION ANALYSIS AND CORRECTION ENABLING SYSTEM (FOR SHORT TRACES), GHAZIABAD ON 06.03.2015. ON THE BASIS OF AN INTIMATION UNDER SEC. 154 R.W.S 200A, A DEMAND OF RS. 9,72,300/ - WAS DETERMINED TOWARDS VIZ. (I). INTEREST ON LATE PAYMENT : RS. 9,07,553/ - ; (II). SHORT DEDUCTION/COLLECTION : RS. 14/ - ; (III). ADDITIONAL LATE PA YMENT INTEREST: RS. 46,223/ - ; AND (IV). INTEREST UNDER SEC . 220(2) : RS. 18,509/ - . I T WAS OBSERVED BY THE ASSESSEE THAT INTEREST WAS LEVIED UNDER SEC. 201(1A) FOR LATE DEPOSIT OF TDS @ 1% FOR EVERY MONTH OR PART OF A MONTH, ON THE AMOUNT OF SUCH TAX, FROM T HE DATE ON WHICH SUCH TAX WAS DEDUCTIBLE TILL THE DATE ON WHICH SUCH TAX WAS ACTUALLY PAID. P A G E | 10 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX 12. AGGRIEVED, THE ASSESSEE ASSAILED THE INTIMATION UNDER SEC. 154 PASSED BY THE DCIT, CPC - (TDS), GHAZIABAD LEVYING INTEREST UNDER SEC. 201(1A) IN APPEAL BEFORE T HE CIT(A). IT WAS THE CONTENTION OF THE ASSESSEE BEFORE THE CIT(A) THAT THOUGH THE CHEQU ES TOWARDS PAYMENTS OF TDS WERE TENDERED TO THE BANK I.E STATE BANK OF INDIA, BRANCH: BA NDRA KURLA COMPLEX, MUMBAI BEFORE THE STIPULATED DUE DATE, HOWEVER THE BANK HAD DELAYED THE REMITTANCE OF THE AMOUNT TO THE GOVERNMENT ACCOUNT. IT WAS SUBMITTED BY THE ASSESSEE THAT THE DCIT - CPC (TDS), GHAZIABAD CONSIDERING THE DELAY ON THE PART OF THE BANK AS THE DELAY IN PAYMENT OF TDS BY THE ASSESSEE, HAD THUS WRONGLY LEV IED I NTEREST UNDER SEC. 201(1A). HOWEVER, THE CIT(A) AFTER DELIBERATING ON THE CONTENTIONS OF THE ASSESSEE WAS NOT PERSUADED TO SUBSCRIBE TO THE SAME AND TREATING THE ASSESSEE AS BEING IN DEFAULT FOR NOT DEPOSITING THE AMOUNT OF TDS WITHIN THE STIPULATED TIME P ERIOD, THUS UPHELD THE ORDER OF THE A.O. 1 3 . THE ASSESSEE BEING AGGRIEVED WITH THE ORDER OF THE CIT(A) HAS CARRIED THE MATTER IN APPEAL BEFORE US. WE FIND THAT AS THE ISSUE INVOLVED IN THE PRESENT APPEAL I.E AS TO WHETHER THE CIT(A) IS RIGHT IN LAW AND TH E FACTS OF THE CASE IN TREATING THE ASSESSEE AS BEING IN DEFAULT FOR DELAY IN DEPOSIT OF TDS, THOUGH THE CHEQUES TOWARDS THE AMOUNT OF TDS WERE TENDERED BY THE ASSESSEE WITH THE GOVERNMENT BANK WITHIN THE STIPULATED TIME PERIOD, HAD BEEN DELIBERATED UPON A ND ADJUDICATED BY US WHILE DISPOSING OFF THE APPEAL OF THE ASSESSEE FOR THE FIRST QUARTER FOR THE YEAR UNDER CONSIDERATION IN ITA NO. 5394/MUM/2017, THEREFORE, OUR ORDER THEREIN PASSED SHALL APPLY MUTATIS MUTANDIS FOR DISPOSING OFF THE PRESENT APPEAL OF THE ASSESSEE FOR THE FIRST QUARTER IN ITA NO. 5395/MUM/2017. BEFORE PARTING, WE MAY HEREIN OBSERVE THAT AS WE HAVE QUASHED THE INTEREST LEVIED BY THE P A G E | 11 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX A.O UNDER SEC. 201(1A), THEREFORE, THE CONSEQUENTIAL DEMAND RAISED BY THE A.O TOWARDS ADDITIONAL LATE PA YMENT INTEREST AND INTEREST UNDER SEC. 220(2) SHALL ALSO STAND VACATED. 1 4 . THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ITA NO. 5396/MUM/2017 A.Y. 2008 - 09 1 5 . WE SHALL NOW ADVERT TO THE APPEAL FILED AGAINST THE ORDER OF THE CIT(A) ARISING FROM THE INTIMATION OF THE DCIT, CPC - (TDS) UNDER SEC. 154 IN RESPECT OF THE SECOND QUARTER OF A.Y. 2008 - 09. THE ASSESSEE ASSAILING THE ORDER OF THE CIT(A) HAS RAISED BEFORE US THE FOLLOWING GROUNDS OF APPEAL : 1. THE LD. COMMISSI ONER OF INCOME TAX (APPEALS) - 60, MUMBAI , HAS ERRED IN LAW AND IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN UPHOLDING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME - TAX - CPC (TDS), WHEREIN OIL AND NATURAL GAS CORPORATION LIMITED WAS HELD AS ASSESSEE IN DEFAULT FOR ALLEGED DELAYED DEPOSIT OF TD S AND INTEREST WAS LEVIED UNDER SECTION 201 (1A) OF THE INCOME - TAX ACT, 1961 . 2. THE L D . COMMISSIONER OF INCOME TAX (APPEALS) - 60, MUMBAI, HAS ERRED IN LAW AND IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN UPHOLDING THE CHARGE OF INTEREST UNDER S ECTION 220 (2) OF THE INCOME - T AX ACT, 196 1. 3. THE APPELLANT CRAVES PERMISSION TO ADD, ALTER AND/OR AMEND ANY GROUND(S) OF APPEAL BEFORE OR AT THE TIME OF HEARING. 1 6 . BRIEFLY STATED, THE ASSESSEE HAD FILED AN OFFLINE RECTIFICATION ON 04.03.2015 IN FORM NO. 26 FOR THE SECOND QUARTER OF THE FINANCIAL YEAR 2007 - 08, WHICH WAS PROCESSED BY THE TDS RECONCILIATION ANALYSIS AND CORRECTION ENABLING SYSTEM (FOR SHORT TRACES), GHAZIABAD ON 06.03.2015. ON THE BASIS OF AN INTIMATION UNDER SEC. 154 R.W.S 200A, DEMAND OF RS. 15,60,940/ - WAS DETE RMINED TOWARDS VIZ. (I). INTEREST ON LATE PAYMENT: RS. 14,57,588 / - ; (II). SHORT DEDUCTION/COLLECTION : RS. 2.54 ; (III). ADDITIONAL LATE PAYMENT INTEREST : RS. 73,566/ - ; AND (IV). INTEREST UNDER SEC. 220(2): RS. 29,787/ - . IT WAS P A G E | 12 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX OBSERVED BY THE ASSESSEE THA T INTEREST WAS LEVIED UNDER SEC. 201(1A) FOR LATE DEPOSIT OF TDS @ 1% FOR EVERY MONTH OR PART OF A MONTH, ON THE AMOUNT OF SUCH TAX, FROM THE DATE ON WHICH SUCH TAX WAS DEDUCTIBLE TILL THE DATE ON WHICH SUCH TAX WAS ACTUALLY PAID. 1 7 . AGGRIEVED, THE ASSES SEE ASSAILED THE INTIMATION UNDER SEC. 154 PASSED BY THE DCIT, CPC - (TDS), GHAZIABAD LEVYING INTEREST UNDER SEC. 201(1A) IN APPEAL BEFORE THE CIT(A). IT WAS THE CONTENTION OF THE ASSESSEE BEFORE THE CIT(A) THAT THOUGH THE CHEQUES TOWARDS PAYMENTS OF TDS WE RE TENDERED WITH THE BANK I.E STATE BANK OF INDIA, BRANCH: BANDRA KURLA COMPLEX, MUMBAI BEFORE THE STIPULATED DUE DATE, HOWEVER THE BANK HAD DELAYED THE REMITTANCE OF THE AMOUNT TO THE GOVERNMENT ACCOUNT. IT WAS SUBMITTED BY THE ASSESSEE THAT THE DCIT - CP C(TDS), GHAZIABAD CONSIDERING THE DELAY ON THE PART OF THE BANK AS THE DELAY IN PAYMENT OF TDS BY THE ASSESSEE, HAD THUS WRONGLY LEVIED INTEREST UNDER SEC. 201(1A). HOWEVER, THE CIT(A) AFTER DELIBERATING ON THE CONTENTIONS OF THE ASSESSEE WAS NOT PERSUADED TO SUBSCRIBE TO THE SAME AND TREATING THE ASSESSEE AS BEING IN DEFAULT FOR NOT DEPOSITING THE AMOUNT OF TDS WITHIN THE STIPULATED TIME PERIOD UPHELD THE ORDER OF THE A.O. 1 8 . THE ASSESSEE BEING AGGRIEVED WITH THE ORDER OF THE CIT(A) HAS CARRIED THE MATTE R IN APPEAL BEFORE US. WE FIND THAT AS THE ISSUE INVOLVED IN THE PRESENT APPEAL I.E AS TO WHETHER THE CIT(A) IS RIGHT IN LAW AND THE FACTS OF THE CASE IN TREATING THE ASSESSEE AS BEING IN DEFAULT FOR DELAY IN DEPOSIT OF TDS, THOUGH THE CHEQUES TOWARDS THE AMOUNT OF TDS WERE TENDERED BY THE ASSESSEE WITH THE GOVERNMENT BANK BEFORE THE STIPULATED TIME PERIOD, HAD BEEN DELIBERATED UPON AND ADJUDICATED BY US WHILE DISPOSING OFF THE APPEAL OF THE ASSESSEE FOR THE FIRST QUARTER FOR THE YEAR UNDER CONSIDERATION IN ITA NO. 5394/MUM/2017, THEREFORE, OUR ORDER THEREIN PASSED SHALL APPLY P A G E | 13 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX MUTATIS MUTANDIS FOR DISPOSING OFF THE PRESENT APPEAL OF THE ASSESSEE FOR THE SECOND QUARTER IN ITA NO. 539 6 /MUM/ . BEFORE PARTING, WE MAY HEREIN OBSERVE THAT AS WE HAVE QUASHED THE INTEREST LEVIED BY THE A.O UNDER SEC. 201(1A), THEREFORE, THE CONSEQUENTIAL DEMAND RAISED BY THE A.O TOWARDS ADDITIONAL LATE PAYMENT INTEREST AND INTEREST UNDER SEC. 220(2) SHALL ALSO STAND VACATED. 1 9 . THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ITA NO. 539 7 /MUM/2017 A.Y. 2008 - 09 20 . WE SHALL NOW ADVERT TO THE APPEAL FILED AGAINST THE ORDER OF THE CIT(A) ARISING FROM THE INTIMATION OF THE DCIT, CPC - (TDS) UNDER SEC. 154 IN RESPECT OF THE THIRD QUARTER OF A.Y. 2008 - 09. THE ASSESSEE ASSAILING THE ORDER OF THE CIT(A) HAS RAISED BEFORE US THE FOLLOWING GROUNDS OF APPEAL : 1. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 60, MUMBAI, HAS ERRED IN LAW AND IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN UPHOLDING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME - TAX - CPC (TDS), WHEREIN OIL AND NATURAL GAS CORPORATION LIMITED WAS HELD AS ASSESSEE IN DEFAULT FOR ALLEGED DELAYED DEPOSIT OF TDS AND INTEREST WAS LEVIED UNDER SECTION 201 (1 A) OF THE INCOME - TAX ACT, 196 1. 2. THE APPELLANT CRAVES PERMISSION TO ADD, ALTER AND/OR AMEND ANY GROUND(S) OF APPEAL BEFORE OR AT THE TIME OF HEARING. 2 1 . BRIEFLY STATED, THE ASSESSEE HAD FILED AN OFFLINE RECTIFICATION ON 04.03.2015 IN FORM NO. 26 FOR THE THIRD QUARTER OF THE FINANCIAL YEAR 2007 - 08, WHICH WAS PROCESSED BY THE TDS RECONCILIATION ANALYSIS AND CORRECTION ENABLING SYSTEM (FOR SHORT TRACES), GHAZIABAD ON 06.03.2015. ON THE BASIS OF AN INTIMATION UNDER SEC. 154 R.W.S 200A, A DEMAND OF RS. 8,68,110/ - WAS DETERMINED TOWARDS ADDITIONAL LATE PAYMENT INTEREST. IT WAS OBSERVED BY THE ASSESSEE THAT INTEREST WAS LEVIED UNDER SEC. 201(1A) FOR LATE DEPOSIT OF TDS @ 1% FOR EVERY MONTH OR PART OF A MONTH, ON THE AMOUNT OF SUCH TAX, FROM THE DATE ON WHICH P A G E | 14 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX SUCH TAX WAS DEDUCTIBLE TILL THE DATE ON WHICH SUCH TAX WAS ACTUALLY PAID. 2 2 . AGGRIEVED, THE ASSESSEE ASSAILED THE INTIMATION PASSED UNDER SEC. 154 BY THE DCIT, CPC - (TDS), GHAZIABAD LEVYING INTEREST UNDER SEC. 201(1A) IN APPEAL BEFORE THE CIT(A). IT WAS THE CONTENTION OF THE A SSESSEE BEFORE THE CIT(A) THAT THOUGH THE CHEQUES TOWARDS PAYMENTS OF TDS WERE TENDERED TO THE BANK I.E STATE BANK OF INDIA, BRANCH: BANDRA KURLA COMPLEX, MUMBAI BEFORE THE STIPULATED DUE DATE, HOWEVER THE BANK HAD DELAYED THE REMITTANCE OF THE AMOUNT TO THE GOVERNMENT ACCOUNT. IT WAS SUBMITTED BY THE ASSESSEE THAT THE DCIT - CPC (TDS), GHAZIABAD CONSIDERING THE DELAY ON THE PART OF THE BANK AS THE DELAY IN PAYMENT OF TDS BY THE ASSESSEE, HAD THUS WRONGLY LEVIED INTEREST UNDER SEC. 201(1A). HOWEVER, THE CIT (A) AFTER DELIBERATING ON THE CONTENTIONS OF THE ASSESSEE WAS NOT PERSUADED TO SUBSCRIBE TO THE SAME AND TREATING THE ASSESSEE AS BEING IN DEFAULT FOR NOT DEPOSITING THE AMOUNT OF TDS WITHIN THE STIPULATED TIME PERIOD, UPHELD THE ORDER OF THE A.O. 2 3 . TH E ASSESSEE BEING AGGRIEVED WITH THE ORDER OF THE CIT(A) HAS CARRIED THE MATTER IN APPEAL BEFORE US. WE FIND THAT AS THE ISSUE INVOLVED IN THE PRESENT APPEAL I.E AS TO WHETHER THE CIT(A) IS RIGHT IN LAW AND THE FACTS OF THE CASE IN TREATING THE ASSESSEE AS BEING IN DEFAULT FOR DELAY IN DEPOSIT OF TDS, THOUGH THE CHEQUES TOWARDS THE AMOUNT OF TDS WERE TENDERED BY THE ASSESSEE TO THE GOVERNMENT BANK WITHIN THE STIPULATED TIME PERIOD, HAD BEEN DELIBERATED UPON AND ADJUDICATED BY US WHILE DISPOSING OFF THE APPEA L OF THE ASSESSEE FOR THE FIRST QUARTER FOR THE YEAR UNDER CONSIDERATION IN ITA NO. 5394/MUM/2017, THEREFORE, OUR ORDER THEREIN PASSED SHALL APPLY MUTATIS MUTANDIS FOR DISPOSING OFF THE PRESENT APPEAL OF THE ASSESSEE FOR THE THIRD QUARTER IN ITA NO. 53 9 7 /MUM/2017. P A G E | 15 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX 2 4 . THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ITA NO. 5398/MUM/2017 A.Y. 2008 - 09 2 5 . WE SHALL NOW ADVERT TO THE APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) ARISING FROM THE INTIMATION OF THE DCIT, CPC - (TDS) UNDER SEC. 154 IN RESPECT OF THE FOURTH QUARTER OF A.Y. 2008 - 09. THE ASSESSEE ASSAILING THE ORDER OF THE CIT(A) HAS RAISED BEFORE US THE FOLLOWING GROUNDS OF APPEAL : 1. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 60, MUMB AI, HAS ERRED IN LAW AND IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN UPHOLDING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME - TAX - CPC (TDS). WHEREIN OIL AND NATURAL GAS CORPORATION LIMITED WAS HELD AS ASSESSEE IN DEFAULT FOR ALLEGED DELAYED DEPOSIT OF TDS AND INTERE ST WAS LEVIED UNDER SECTION 201 (1A) OF THE INCOME - TAX ACT, 1961. 2. THE LD . COMMISSIONER OF INCOME TAX (APPEALS) - 60. MUMBAI, HAS ERRED IN LAW AND IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN UPHOLDING THE CHARGE OF INTEREST UNDER SECTION 220 (2) OF THE INCOME - TAX ACT, 196 1. 3. THE APPELLANT CRAVES PERMISSION TO ADD , ALTER AND/OR AMEND ANY GROUND(S) OF APPEAL BEFORE OR AT THE TIME OF HEARING. 2 6 . BRIEFLY STATED, THE ASSESSEE HAD FILED AN OFFLINE RECTIFICATION ON 04.03.2015 IN FORM NO. 26 FOR THE FOURTH QUARTER OF THE FINANCIAL YEAR 2007 - 08, WHICH WAS PROCESSED BY THE TDS RECONCILIATION ANALYSIS AND CORRECTION ENABLING SYSTEM (FOR SHORT TRAC ES), GHAZIABAD ON 06.03.2015. ON THE BASIS OF AN INTIMATION UNDER SEC. 154 R.W.S 200A, A DEMAND OF RS. 15 ,23,200/ - WAS DETERMINED TOWARDS VIZ. (I). INTEREST ON LATE PAYMENT : RS. 13,35,950/ - ; (II). SHORT DEDUCTION/COLLECTION : RS. 3.44 ; (III). ADDITIONAL LATE PAYMENT INTEREST : RS. 226/ - ; AND (IV). INTEREST UNDER SEC. 220(2) : RS. 1,87,018/ - . IT WAS OBSERVED BY THE ASSESSEE THAT INTEREST WAS LEVIED UNDER SEC. 201(1A) FOR LATE DEPOSIT OF TDS @ 1% FOR EVERY MONTH OR PART OF A MONTH, ON THE AMOUNT OF SUCH TA X, FROM THE DATE ON WHICH SUCH TAX WAS DEDUCTIBLE TILL THE DATE ON WHICH SUCH TAX WAS ACTUALLY PAID. P A G E | 16 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX 2 7 . AGGRIEVED, THE ASSESSEE ASS AILED INTIMATION UNDER SEC. 154 PASSED BY THE DCIT, CPC - (TDS), GHAZIABAD LEVYING INTEREST UNDER SEC. 201(1A) IN APPEAL BEFORE THE CIT(A). IT WAS THE CONTENTION OF THE ASSESSEE BEFORE THE CIT(A) THAT THOUGH THE CHEQUES TOWARDS PAYMENTS OF TDS WERE TENDERED WITH THE BANK I.E STATE BANK OF INDIA, BRANCH: BANDRA KURLA COMPLEX, MUMBAI ON 06.02.2008 I.E BEFORE THE STIPULATED DUE DATE, HOWEVER THE BANK HAD DELAYED THE REMITTANCE OF THE AMOUNT TO THE GOVERNMENT ACCOUNT. IT WAS SUBMITTED BY THE ASSESSEE THAT THE DCIT - CPC (TDS), GHAZIABAD CONSI DERING THE DELAY ON THE PART OF THE BANK AS THE DELAY IN PAYMENT OF TDS BY THE ASSESSEE, HAD THUS WRONGLY LEVIED INTEREST UNDER SEC. 201(1A). HOWEVER, THE CIT(A) AFTER DELIBERATING ON THE CONTENTIONS OF THE ASSESSEE WAS NOT PERSUADED TO SUBSCRIBE TO THE SA ME AND TREATING THE ASSESSEE AS BEING IN DEFAULT FOR NOT DEPOSITING THE AMOUNT OF TDS WITHIN THE STIPULATED TIME PERIOD, UPHELD THE ORDER OF THE A.O. 2 8 . THE ASSESSEE BEING AGGRIEVED WITH THE ORDER OF THE CIT(A) HAS CARRIED THE MATTER IN APPEAL BEFORE US. WE FIND THAT AS THE ISSUE INVOLVED IN THE PRESENT APPEAL I.E AS TO WHETHER THE CIT(A) IS RIGHT IN LAW AND THE FACTS OF THE CASE IN TREATING THE ASSESSEE AS BEING IN DEFAULT FOR DELAY IN DEPOSIT OF TDS, THOUGH THE CHEQUES TOWARDS THE AMOUNT OF TDS WERE TEN DERED BY THE ASSESSEE TO THE GOVERNMENT BANK WITHIN THE STIPULATED TIME PERIOD, HAD BEEN DELIBERATED UPON AND ADJUDICATED BY US WHILE DISPOSING OFF THE APPEAL OF THE ASSESSEE FOR THE FIRST QUARTER FOR THE YEAR UNDER CONSIDERATION IN ITA NO. 5394/MUM/2017 , THEREFORE, OUR ORDER THEREIN PASSED SHALL APPLY MUTATIS MUTANDIS FOR DISPOSING OFF THE PRESENT APPEAL OF THE ASSESSEE FOR THE F OURTH QUARTER IN ITA NO. 539 8 /MUM/2017. BEFORE PARTING, WE MAY HEREIN OBSERVE THAT AS WE HAVE QUASHED THE INTEREST LEVIED BY THE A.O UNDER SEC. 201(1A), THEREFORE, THE CONSEQUENTIAL DEMAND RAISED P A G E | 17 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX BY THE A.O TOWARDS ADDITIONAL LATE PAYMENT INTEREST AND INTEREST UNDER SEC. 220(2) SHALL ALSO STAND VACATED. 2 9 . THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 30 . THE APPEALS OF THE ASS ESSEE IN ITA NOS. 5394 TO 5398/MUM/2017 FOR THE ASSESSMENT YEAR 2008 - 09 ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 .11.2018 SD/ - SD/ - (PRADIP K UMAR KEDIA) (RAVISH SOOD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; 30 . 11.2018 PS. ROHIT / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI P A G E | 18 ITA NOS. 5394 TO 5398/MUM/2017 A.Y. 2008 - 09 OIL AND NATURAL GAS CORPORATION VS. DEPUTY COMMISSIONER OF INCOME TAX