Tribunal held that for purpose of levy of interest under section 201(1A) for late deposit of TDS, date of tendering of cheque for payment of Government dues could be deemed to be date of payment of tax and where bank causes delay in remittance of said amount to Government account, no interest can be levied under section 201(1A) from assessee. Followed CIT v. K. Kalpana Saraswathi v. P.S.S. Somasundram Chettiar 1980 AIR 512 (SC) CBDT Circular No. 261 [F.No. 385/61/79-IT (B)], dated 8-8-1979, date of tendering of cheque for payment of Government dues would be deemed to be the date of payment of such taxes. The aforesaid CBDT circular was applicable to all Government dues, and made no distinction whether the payment was by way of TDS, advance tax, self-assessment tax etc. (AY. 2008 -09)
Oil and Natural Gas Corporation Ltd. v. DCIT (2019) 176 ITD 124 / 197 TTJ 137 (Mum.)(Trib.)
S. 201 : Deduction at source-Failure to deduct or pay-Date of tendering of cheque for payment of Government dues could be deemed to be date of payment of tax-Delay in remittance of said amount to Government account by Bank, no interest can be levied. [S. 201(IA)]