Section 201 of Income Tax Act, 1961—In the instant case, the assessee was saddled with interest on account of late payment of TDS for Quarter-3 of financial year 2016-17.

The plea of the assessee was that interest should be calculated, based upon the concept of month starting from the date of commencement of the default. In other words, the assessee submitted that where the period of delay was more than 30 / 31 days, the interest was to be computed for two months but where it was less than 30 / 31 days, the interest was to be computed for one month.

Held that—we hold that for the purpose of computation of interest, the expression month is to be interpreted as period of 30 days and not British calendar. The Ld. AR has placed on record computation to submit that excess interest levied would be Rs. 49,363/- which need to be reversed. We direct Ld. CPC-TDS / concerned AO to verify the same and charge interest accordingly in terms of our above order.[ECONOMIC LAWS PRACTICE VERSUS CIT (APPEALS) - 59 MUMBAI] [2019] 20 ITCD Online (21) [ITAT MUMBAI]