Advance tax payment made online in the evening or late night but getting debited next day morning.
INTEROCEAN SHIPPING (INDIA) PVT. LTD. VERSUS DCIT, CPC-TDS, NEW DELHI
Levy of interest u/s 201(1A) – Delay in depositing TDS to government – online payment – Held that:- In the instant case, undisputedly, the assessee has made online payment of TDS due for the quarter ending 30.06.2014 on 07.07.2014 which was treated having been paid on 08.07.2014, the date of debiting the said amount from the account of the assessee.
When the assessee has made payment of TDS on 07.07.2014 by way of online payment and the same was debited from his account on 07.07.2014, the same is to relate back with date of online payment i.e. 07.07.2014 and not 08.07.2014, as online payment is on better footing than payment made by cheque as has been discussed by Hon’ble Apex Court in K. Saraswathy vs. P.S.S. Somasundaram Chettiar [1989 (5) TMI 318 – SUPREME COURT]
So, following the decision of K. Saraswathy vs. P.S.S. Somasundaram Chettiar (supra) as well as P.L. Haulwel Trailers Ltd. vs. DCIT [2006 (1) TMI 213 – ITAT MADRAS-B], we are of the considered view that the assessee has made payment of TDS for the quarter ending on the due date and no interest is to be charged. Consequently, ground no.1 of AY 2015-16 is determined in favour of the assessee.
CA BRAJESH AGARWAL