Case Law on Interest waived u/s 201 - delay in deposit of TDS

 ITAT DELHI M/S. NATMA SECURITIES LIMITED [NOW M/S. NATMA SECURITIES PVT. LTD.] VERSUS ACIT, CIRCLE : 76 (1) NEW DELHI.-No.- I.T.A. No. 6104/DEL/2019 Dated.- November 30, 2022                                                                                                                           

FACTS:-The assessee Company is a non-banking Finance Company, engaged in acceptance of inter-corporate deposits. During the Financial Year 2012-13, the assessee Company has accepted inter-corporate deposits to the tune of Rs. 363 crores upon which provision for interest was made for Rs. 31,62,69,531/- against which the TDS for Rs. 3,16,26,953/- was provided @ 10% u/s 194A of the Act. The assessee has deposited TDS amount on 31/07/2013 for Rs. 3,39,98,973/- which included an amount of Rs. 23,72,020/- on account of interest for 5 months starting from 01/03/2013 to 31/07/2013 against the same TDS return was filed on 27/08/2013. A demand u/s 201/201(1A) has been generated by the CPC which has been sought for rectification u/s 154 of the Act by the assessee and the Ld. Assistant Commissioner of Income Tax has dismissed the application for rectification filed u/s 154 of the Act vide order dated 31/03/2017.As against the order dated 31/03/2017, the assessee has preferred an appeal before the CIT(A) and the Ld.CIT(A) vide order dated 19/04/2019, dismissed the appeal filed by the assessee.                                                     HELD THAT:- In the instance case, there is One day delay in debiting the amount from the Assessee’s bank account which is apparently due to the mistake to the banker. Further by relying on the ratio laid down in the case of Standard Chartered Bank [2020 - ITAT MUMBAI] we are of the opinion that the payment of TDS by the assessee would relate bank to the date of presentation of the cheque i.e. on 31/07/2013 by the assessee to the banker. Therefore, the interests levied by the Revenue authorities are deserves to be waived off. Accordingly, we allow the Grounds of Appeal of the assessee.