Bank of Baroda. v. DCIT (2018) 168 ITD 180 (Ahd) (Trib.)

S. 201 : Deduction at source – Failure to deduct or pay –Interest is to be levied only from date on which tax was deducted and till date on which tax was deposited, only if such a period exceeds one month however interest would be levied even for delay of a day. [ S. 194A, 201(IA) ]

The AO charged the interest under S.201(1A) for two months, i.e., September and October . On appeal the Tribunal held that ; interest was to be levied only for actual period of delay, i.e., from date on which tax was deducted and till date on which tax was deposited, only if such a period exceeds one month however, interest would be levied even for delay of a day. ( AY. 2014-15)