In a major relief to Central Bank of India the Delhi ITAT deleted the interest as there was sufficient cause for the assessee not to remit TDS amount.
The assessee-bank had deducted the TDS amount from the arrears of employee in March 2011 and the same has been remitted to the IT Department on 10/04/2013, the A.O. charged interest of Rs. 1,69,962/-.
The assessee filed application u/s 154 read with Section 200A of the Act which has been dismissed by the DCIT, TDS, CPC, Vaishali, Ghaziabad dated 31/12/2013.
Aggrieved by the order u/s 154 of the Act, the assessee filed an appeal before the CIT(A), the CIT(A) dismissed the appeal filed by the assessee vide order dated 17/02/2015 wherein the CIT(A) held that the assessee is guilty of late deposit of TDS in Government Account and opined that the interest charged of Rs. 1,69,962/- is justifiable.
The assessee preferred the present Appeal before the ITAT.
The assessee submitted that the assessee has not deposited the TDS on time in compliance with the interim order of the Madras High Court in Writ Petition No. 8102/2011 and though the interim order was in operation during the pendency of the writ petition, the assessee inadvertently deposited the TDS.
The A.O. without considering the effect of Interim Order of the Madras High Court, erroneously levied interest on the assessee. The assessee was having sufficient cause for not depositing the TDS on time due to the Interim Order passed by the Madras High Court and the authorities have committed an error by charging interest of Rs. 1,69,962/- for late deposit of TDS amount of Rs. 4,37,822/- for Assessment Year 2011-12, therefore, prayed for allowing the Appeal.
The ITAT held that there was sufficient cause for the assessee not to remit TDS amount and the authorities ought not to have charged the interest of Rs. 1,69,962/- on the Assessee.
The tribunal set aside the order of the CIT(A) by deleting the interest of Rs. 1,69,962/- levied on the Assessee by the Revenue for late payment of TDS amount.
Case Title: Central Bank of India V/s CIT