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Income Tax Appellate Tribunal, DELHI BENCHES ‘G’, NEW DELHI
Before: Sh. Amit ShuklaDr. B. R. R. Kumar
ORDER Per Bench: The present appeals have been filed by the assessee against the orders of the ld. CIT(A)-41, New Delhi dated 10.05.2016. 2. Since, the issues involved in all these appeals are common, they were heard together and are being disposed off by common order.
In following grounds have been raised by the assessee: “1. That the orders passed by the Assessing Officer and Commissioner of Income Tax(Appeals)-41, New Delhi are bad in law and void ab initio. to 4538Del/2016 2 Vital Construction Pvt. Ltd.
2. That on the facts and circumstances of the case, the ld. CIT (A) has erred in confirming the charging of interest u/s 201(1A) of Income Tax Act, 1961 of Rs.20,020/- despite the fact that TDS was deposited well within time and even bank account of appellant was debited for TDS deposited on 7th October 2010 being the due date for deposit.
3. That without prejudice on facts and circumstances of the case, CIT(A)-41, New Delhi erred in directing to charge interest for 2 months.”
The short issue of the case is that the assessee has deposited the TDS for the month of September 2010 on 07.10.2010. The copy of the bank statement reflecting the debit of amounts on 07.10.2010 was submitted before the Assessing Officer. The Assessing Officer went ahead levying interest as the departmental systems are reflecting the receipt on 08.10.2010. The bank account reflected to transfer funds on 07.10.2010 which is not disputed by any of the parties.
However, the ld. CIT (A), totally ignoring the fact that the assessee has paid the amount to the department on 7th and such amount has already been debited from the account of the assessee and that the amount is not at the disposal of the assessee for any purpose for his utilization, has directed levy of interest, by doing extensive academic exercise involving Rule 80 of the compilation of the Treasury Rules, Central Treasury Rules, CBDT Circular No. 261 of 1979, Central Government Account Rules, 1983, Section 3(35) of General Clauses Act, Interpretation of British Calendar and English Calendar etc. The ld. CIT (A) further held that since the amount has reflected on departmental Online Tax Accounting System (OLTAS) on 08.10.2010, the assessee is liable to levy of interest. to 4538Del/2016 3 Vital Construction Pvt. Ltd.
As per the provisions of the Income Tax Act, the due date for payment of TDS is 7th of every succeeding month. The lag time of the OLTAS of the department cannot be attributed as the fault of the assessee. As it is proved undisputedly that the assessee has paid the amounts on 7th, and amounts stands debited from the account and transferred, we hereby hold that no interest is leviable on the assessee as the assessee has deposited TDS in time as per the provisions of the Act.
The appeals are treated as allowed. (Order Pronounced in the Open Court on 13/09/2019).