U.P. Avas Evam Vikas Prisad, Ghaziabad V. ITO, Ghaziabad

ITA 6001/DEL/2012

• Counselvise Citation: 600120114 RSA 2012
• Duration Of Justice: 2 year(s) 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 05-11-2014
• Assessment Year: misc
• Appeal Filed On: 03-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S MEENA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: H : NEW DELHI BEFORE SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO S . 6000 & 6001 /DEL / 2012 ASSESSMENT YEAR: 2011 - 12 U.P. AVAS EVAM VIKAS VS. INCOME TAX OFFICER, PARISHAD, DIV. 22 T.D.S./SURVERY, VASUNDHRA GHAZIABAD (PAN: MRTC00550E ) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. RANJAN CHOPRA, CA RESPONDEN T BY: SH. R.S. MEENA, CIT, DR ORDER PER SHRI I.C. SUDHIR, JM : 1. THE REVENUE HAS QUESTIONED FIRST APPELLATE ORDER ON THE FOLLOWING COMMON GROUNDS: I. THAT THE C OMMISSIONER OF INCOME - TAX ( APPEAL ) HAD ERRED ON FACTS AND UNDER THE LAW IN SUSTAINING THE INTEREST CHARGED BY THE A.O. U/S 201(1A) OF THE INCOME - TAX ACT AT RS. 18,000/ - IN A.Y. 201 1 - 12/Q - 1 AND RS. 42,280/ - IN A.Y. 2011 - 12/Q - 3. II. THE COMMISSIONER OF INCOME - TAX(APPEAL) HAD ERRED ON FACTS AND UNDER THE LAW TO HOLD THAT THE INTEREST U/S 201(1A) IS LEVIABLE UP TO THE DATE TO THE ACTUAL CREDIT OF THE TDS AMO UNT TO THE GOVERNMENT ACCOUNT AND NOT UP TO THE DATE ON WHICH THE CHEQUES WERE PRESENTED TO THE BANKER AND CONSEQUENTLY THE INTEREST CHARGED BY THE A.O. U/S 201 (1A) AT RS. 18,000/ - IN A.Y. 201 1 - 12/Q - 1 AND R S. 42,280/ - IN A.Y. 2011 - 12/Q - 3 ARE BAD IN LAW. III. T HAT THE COMMISSIONER OF INCOME - TAX(APPEAL) HAD ERRED ON FACTS AND UNDER THE LAW IN SUSTAINING THE ACTION OF A.O. FOR CHARGING OF INTEREST ON INTEREST AND CONSEQUENTLY THE INTEREST CHARGED BY THE A.O. AT RS. 3365/ - IN A.Y. 2011 - 12/Q - 1 AND RS. 4050/ - IN A.Y . 2011 - 12/Q - 3 U/S 201(1A) OF THE ACT ARE BA D IN LAW. 2 ITA NOS. 6000 & 6001 /DEL /2012 AY: 2011 - 12 2. HEARD AND CONSIDERED THE ARGUMENTS ADVANCED BY THE PARTIES IN VIEW OF THE ORDERS OF THE AUTHORITIES BELOW AND THE DECISIONS RELIED UPON. 3. IN THE QUARTER OF THE ASSESSMENT YEAR, THE IT O., TDS/SURVEY WO RKED OUT RS. 18,000/ - AS INTEREST ON LATE PAYMENT AND RS. 3,365/ - AS INTEREST ON INTEREST. LIKE WISE IN QUARTER THREE OF THE ASSESSMENT YEAR, THE ITO , TDS/SURVEY WORKED OUT INTEREST OF RS. 42,280/ - ON LATE PAYMENT AND RS. 4,050/ - INTEREST ON INTEREST. THE INTEREST ON LATE PAYMENT AND THE INTEREST ON INTEREST HAVE BEEN CHARGED UNDER SECTION 201(1A) OF THE INCOME - TAX ACT ,1961 (FOR SHORT THE ACT ) AS THE ITO WAS OF THE VIEW THAT UNL ESS THE AMOUNT IS DEPOSITED IN G OVERNMENT ACCOUNT, CREDIT CANNOT BE GIVEN AND, HENCE, THE DATE OF AMOUNT GETTING CREDITED IN GOVERNMENT S TREASURY CAN ONLY BE TREATED AS THE DATE OF PAYMENT. THE CONTENTION OF THE ASSESSEE , ON THE OTHER HAND, REMAINED THAT THE TAX WAS PAID BY THE CHEQUES AND IT SHALL BE DEEMED THAT THE PAYMENT HAS BEEN MADE ON THE DATE WHEN CHEQUES ARE HANDED OVER TO THE GOVERNMENT S BANKERS ( IF CHEQUES ARE NOT DISHONOURED LATER ). T HE LEARNED CIT(A) DID NOT AGREE WITH THIS VERSION OF THE ASSESSEE . 4. IN SUPPORT OF THE GROUND, THE LEARNED AR HAS REFERRED CBDT CIRCULAR NO. 261 DATED 08.08.1979 AND HAS PLACED RELIANCE ON THE FOLLOWING DECISIONS: I. K. SARASWATHY ALIAS K. KALPANA VS. P.S.S. SOMAS UNDARAM CHETTIAR, 1989 AIR 1553; II. P.L. HAULWEL T RAILERS LTD. VS. DCIT, (2006) 100 ITD 485; III. ITO VS. SMT. RASHMI MAISKAR, ITA NO . 1441/PN/2010, A.Y. 2006 - 07, ORDER DATED 27.09.2011. IV. DCIT VS. M/S TOYOTO BOSHOK U AUTOMOTIVE (I) P. LTD., ITA NO . 834/BANG/2010, A.Y. 2007 - 08, ORDER DATED 03.06.2011 . 3 ITA NOS. 6000 & 6001 /DEL /2012 AY: 2011 - 12 5. LEARNED DR , ON THE OTHER HAND, TRIED TO JUSTIFY THE ORDERS OF THE AUTHORITIES BELOW. 6. AFTER HAVING GONE THROUGH THE DECISIONS RELIED UPON AS WELL AS THE CBDT CIRCULAR NO. 261 DATED 08.08.1979, WE FIND SUBSTANCE IN THE ABOVE CONTENTION OF THE LEARNED AR THAT THE PAYMENT ON THE CHEQUE BEING HONOURED AND ENCASHED RELATES BACK TO THE DATE OF THE RECEIPT OF THE CHEQUE AND IN LAW THE DATE OF PAYMENT IS THE DATE OF DELIVERY OF THE CHEQUE. THE CBDT CIRCULAR NO. 261 HAS ALSO MADE IT CLEAR 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 BE EN MADE ON THE DATE ON WHICH IT WAS HANDED OVER TO THE GOVERNMENT BANKERS. IN VIEW OF THE RATIO LAID DOWN IN THE CITED DECISIONS AND THE CBDT CIRCULAR, ACCORDINGLY WE SET ASIDE THE MATTER TO THE FILE OF THE A.O. TO DECIDE THE ISSUES RAISED IN GROUNDS AFRES H, AFTER AFFORDING OPPORTUNITY OF BEARING HEARD TO THE ASSESSEE. THE GROUNDS ARE THUS ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. THE DECISION IS PRONOU NCED IN THE OPEN COURT ON 23 RD JANUARY, 2015. SD/ - SD/ - ( B.C. MEENA ) ( I.C. SUDHIR ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 23 RD JANUARY, 2015. RK/ - COPY FORWARDED TO: 4 ITA NOS. 6000 & 6001 /DEL /2012 AY: 2011 - 12 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI