TDS deposited electronically within due time date shown on OLTAS irrelevant. There is no provision of waiver of interest for late deposit of TDS
ABCAUS Case Law Citation:
ABCAUS 3239 (2020) (01) ITAT
Important case law relied upon by the parties:
In the instant case, an appeal was filed by the assessee against the order of the Commissioner of Income Tax [Appeals].
The grievance of the assessee was related to charging of interest u/s 201(1A) of the Income tax Act, 1961 [‘The Act’] for late deposit of Tax deducted at Source (TDS).
Under provisions and Rules related to deduction and payment to the credit of the Government, TDS deducted in a month is required to be deposited on or before 7th of the following month.
In one instance, the assessee explained that because of Income tax search at the premises of the assessee, the assessee was held up in the search proceedings and, therefore, could not deposit the tax deducted at source on or before the due date. Thus there was reasonable cause for delay in depositing the tax.
The Tribunal opined that charging of interest u/s 201(1A) of the Act is mandatory in nature and there is no provision of waiver of the same. The interest is charged automatically and there is no question of any reasonable cause.
In another instance, the assessee had deposited the TDS on the due date which was evident from the debit entry appearing in the copy of the bank statement.
However interest had been levied because on OLTAS the tax had been shown as deposited after the expiry of the 7th of the following month resulting into automatic levy of interest.
The Tribunal opined that when the payments had been electronically made on 7th of the following month, which was the due date and the money had flown from the bank account of the assessee, it should not make any difference when the same was shown as credited on OLTAS.
In view of the above, the Tribunal held that the assessee had deposited tax on or before the due date.
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