No interest u/s 201(1A) when TDS is Paid timely but Challan Date wrongly reflected due to Bank’s Mistake

An order u/s 201(1A) of the Act has been passed against the Assessee by charging interest at Rs. 34,320 u/s 201(1A) of the Act.

Appeal before CIT(A): The Assessee had preferred an appeal before the Ld. CIT(A) that had dismissed the appeal of the assessee by confirming the order passed by the Ld. AO.

Appeal before ITAT: Aggrieved by the same, the assessee had preferred the present appeal. It was noted by the tribunal that the Assessee has tendered TDS before the due date and the amount has been already deducted from the Assessee’s bank account, but the Bank officials have mentioned the subsequent dates as the date of tendering the TDS.  Apart from the this, Assessee has also shown the due diligence, when the Bank officials have put the stamp mentioning the subsequent date as tendering the TDS, immediately wrote letters on 18-03-2016 and 04-05-2016 respectively by bringing the fact of tendering the TDS well within due date and sought certificate for the delay from the Bank.

Further, the Ld. A.O. has passed the order charging the interest u/s 201 sub-section (1A) of the Act in a mechanical manner, without finding and verifying the fact regarding the actual dates of payment of TDS made by the Assessee. The tribunal observed that the Ld. CIT(A) had also committed an error in confirming the order passed u/s 200(1A) of the Act. Therefore, the appeal was allowed and the order of lower authorities was set aside the orders of the lower authorities. Hence, the appeal filed by the Assessee was allowed.

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