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The Ld. CIT(A), after perusing the detailed payment chart submitted by the assessee, noted that there was a difference in tendering of challans by the assessee to SBI and date of clearing / stamping on the challan. Going by the wordings of Section 201(1A) (ii) which used the expressionactually paid,it was held that interest was to be levied from date of deduction to the date on which such tax was actually remitted to the credit of the Government. Thecaselawsbeing relied upon by the assessee were held to be not applicable. The assessee’s reliance on CBDT Circular No. 261 dated 08/08/1979 was rejected in view of the fact that the said circular was based on Rule 80 of the compilation of the treasury rules which became redundant and were replaced by Central Government (receipt and payment) Rules, 1983. As per Rule 20 of new rules, the date of receipt of government revenue would be the date on which cheque / draft was cleared and entered in the receipt scroll. Since the basis on which old circular was framed no longer existed, the continuation of the said circular would fall. Regarding assessee’s reliance on Circular No. 676 dated 14/01/1994, it was held that the same was in the context of Section 234B and Section 234C of the Act and therefore, would not apply. Finally, it was held that the tax shall be deemed to have been paid to the government when the actual payment of tax has been brought to the credit of government. The time taken for clearing of cheques was not to be considered while levying interest u/s 201(1A). Accordingly the levy of interest was held to be justified.Aggrieved as aforesaid, the assessee is in further appeal before Tribunal.

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Sec. 201(1A) of Income Tax Act, 1961— Interest —STANDARD CHARTERED BANK vs. DEPUTY CIT.[2020] 28 ITCD Online 073 (ITAT-MUMBAI)