Executive Engineer,, Kaithal v. ITO (TDS), Kaithal

ITA 4457/DEL/2009 | 2009-2010
Pronouncement Date: 27-08-2010 | Result: Dismissed

Appeal Details

RSA Number 445720114 RSA 2009
Bench Delhi
Appeal Number ITA 4457/DEL/2009
Duration Of Justice 9 month(s) 21 day(s)
Appellant Executive Engineer,, Kaithal
Respondent ITO (TDS), Kaithal
Appeal Type Income Tax Appeal
Pronouncement Date 27-08-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 27-08-2010
Date Of Final Hearing 24-08-2010
Next Hearing Date 24-08-2010
Assessment Year 2009-2010
Appeal Filed On 05-11-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B : NEW DELHI BEFORE SHRI R.P.TOLANI AND SHRI K.D.RANJAN ITA NO.4457/DEL/2009 ASSESSMENT YEAR : 2009-10 EXECUTIVE ENGINEER CONSTRUCTION DIVISION NO.3 KAITHAL. VS. THE INCOME TAX OFFICER(TDS) KAITHAL. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAM DIYA GARG A.R. RESPONDENT BY : SHRI MANISH GUPTA SR. D.R. ORDER PER K.D.RANJAN AM: THIS APPEAL BY THE ASSESSEE FOR THE FINANCIAL YEAR 2008-09 ARISES OUT OF ORDER OF CIT(A) KARNAL. THE GROUNDS OF APPEAL R AISED BY ASSESSEE ARE AS UNDER: 1. THAT THE LD. COMMISIONER OF INCOME TAX (APPEALS) HA S ERRED IN LAW AS WELL AS ON FACTS IN UPHOLDING THE CHARGIN G OF INTEREST OF RS.8 462/- UNDER SECTION 201(1A) OF THE ACT FOR TWO MONTHS WHICH IS NOT CHARGEABLE IN THE FACTS OF THE INSTANT CASE AND AS SUCH THE ORDER OF THE CIT(A) IS ARBITRARY & UNJUSTI FIED. 2. THAT THE EXPLANATION RENDERED DURING THE COURSE OF PROCEEDINGS HAS NOT BEEN APPRECIATED IN THE CORRECT PERSPECTIVE WHICH IS ARBITRARY & UNJUSTIFIED. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE DEDU CTED TAX AT SOURCE IN THE MONTH OF APRIL 2008 WHICH WAS REQUIRED TO BE DEPOSI TED IN THE GOVERNMENT ACCOUNT BY 07.5.2008 BUT THE ASSESSEE DEPOSITED THE SAME IN GOVERNMENT 2 ACCOUNT ON 04.6.2008. THE ASSESSING OFFICER THEREF ORE CHARGED INTEREST U/S 201(1A) OF THE ACT FOR TWO MONTHS. 3. ON APPEAL THE LD. CIT(A) UPHELD THE CHARGING OF INTEREST U/S 201(1A) BY OBSERVING AS UNDER: 7. I HAVE CONSIDERED THE FACTS OF THE CASE AND THE SUBMISSIONS OF THE ASSESSEE. CLEARLY AND UNDISPUTEDLY THE ASSESSEE WAS REQUIRED TO DEPOSIT THE TDS BY 07.05.2008 BUT IT IS DEPOSITED O N 04.06.2008 AND THE TDS WAS MADE IN THE MONTH OF APRIL WHEREAS AS PER SECTION 201(1A) INTEREST IS TO BE PAID AT 1% FOR EVERY MONT H OR PART OF A MONTH ON THE AMOUNT OF SUCH TAX FROM THE DATE ON WH ICH SUCH TAX WAS DEDUCTABLE TO THE DATE ON WHICH SUCH TAX IS ACTUALL Y PAID AND THEREFORE THE TAX WAS DEDUCTABLE/DEDUCTED IN APRIL 2008 WHEREAS PAID IN JUNE 2008 AND THEREFORE THERE IS A DELAY OF MORE THAN ONE MONTH HENCE INTEREST IS TO BE CHARGED FOR TWO MONT H AS PER SECTION 201(1A) AND RULE 119A(A) IS NOT RELEVANT FOR ROUNDI NG OFF OF THE PERIOD FOR THIS PURPOSE. THEREFORE CHARGING OF INT EREST OF RS.8 462/- IS CONFIRMED. 4. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. THERE IS NO DISPUTE THAT THE T AX DEDUCTED AT SOURCE WAS TO BE DEPOSITED IN THE ACCOUNT OF CENTRAL GOVERNMEN T BY 07.5.2008. THE ASSESSEE FAILED TO DEPOSIT THE TAX DEDUCTED AT SOUR CE BY THE DUE DATE. UNDER SECTION 201(1A) IF ANY PERSON PRINCIPAL OFFICER O R COMPANY AS IS REFERRED TO IN SEC. 201(1) DID NOT DEDUCT THE WHOLE OR ANY PART OF TAX OR AFTER DEDUCTING FAILS TO PAY THE TAX AS REQUIRED BY OR UNDER INCOME TAX ACT 1961 HE SHALL BE LIABLE TO PAY SIMPLE INTEREST AT THE SPECIFIED R ATE FOR EVERY MONTH OR PART OF THE MONTH ON THE AMOUNT OF SUCH TAX FROM THE DAT E ON WHICH SUCH TAX WAS DEDUCTED TO THE DATE ON WHICH SUCH TAX WERE ACTUALL Y PAID. IN THE INSTANT CASE THE ASSESSEE AFTER DEDUCTING THE TAX AT SOURC E DID NOT DEPOSIT THE TAX WITHIN THE DUE DATE I.E. 07.5.2008. THEREFORE INTE REST U/S 201(1A) IS TO BE PAID BY THE ASSESSEE WHICH IS MANDATORY IN NATURE. SINCE THERE IS FAILURE ON 3 THE PART OF THE ASSESSEE TO PAY THE TAX WITHIN THE DUE DATE WE DO NOT FIND ANY INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A) CON FIRMING THE CHARGING OF INTEREST U/S 201(1A) OF THE ACT. 6. IN THE RESULT APPEAL FILED BY THE ASSESSEE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH AUGUST 2010 AT THE CLOSE OF HEARING OF THE APPEAL. SD/- SD/- (R.P.TOLANI) (K.D.RANJAN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 27.08.2010. PSP COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT DEPUTY REGISTRAR