ASSISTANT COMMISSIONER OF INCOME TAX CORPORATE CIRCLE 1 1, CHENNAI vs. HI TECH ARAI PRIVATE LIMITED, CHENNAI

This appeal filed by the Revenue is directed against the order dated 13.03.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2013-14.

The Appellant-Revenue only effective ground in challenging the action of the ld. CIT(A) in deleting the disallowance for belated remittance of TDS without verifying whether the actual deduction of tax was done on 25.03.2013 on the impugned royalty payments.

At the outset, we note that the Assessing Officer made disallowance of expenditure for which TDS was not remitted within the due date vide para 6 & 6.1 of the assessment order. On perusal of the same, we note that the assessee deducted the amount of ₹.64,95,402/- as TDS for royalty payment for the period of 01.04.2012 to 30.09.2012. The assessee remitted the said TDS amount into Government account on 29.04.2013. According to the Assessing Officer, the said remittance should have been made on or before 7 days from the end of month in which the deduction is made i.e., 07.10.2012.

The ld. AR Shri R. Vijayaraghavan, Advocate drew our attention to Rule 30(2) of Income Tax Rules, 1962, which is reproduced at page 7 of the assessment order. According to him, the assessee has time upto 30.04.2013. The ld. AR further refers to the details which are at page 4 of the impugned order. He argued the ld. CIT(A), by examining the said details, given relief in favour of the assessee. Further, he argued that it may be remitted to the Assessing Officer for verification of the Assessing Officer as reproduced in page 4 of the impugned order.