TDS-interest for late deposit of TDS in FY 2007-08

[J K Bubna]

Wish you and your family  a very happy and prosperous 2012

 

Opinion of professional colleagues is requested on the following matter:

 

A company deposited TDS with the Govt. after a few days of the due date(s) during the financial year 2007-08 and 2008-09 and submitted e-tds returns.Income-tax dept. is now issuing intimation u/s 200A and demand notice u/s 156 for interest for delay in depsoit of TDS.

 

As per Sec.200A, no intimation can be sent after the expiry of one year from the end of the financial year in which the statement is filed. Statements/e-tds returns for FY 2007-08 and 2008-09 were filed in FY 2008-09 and 2009-10 respectively. One year has already elapsed since the end of the financial year in which the statements were filed. Moreover Sec.200A has been inserted w.e.f 01.04.10 i.e Asst. Year 2010-11 and thus should not be applicable for earlier asst. years. Whether intimation u/s 200A and demand notice u/s 156 are valid in such case. Considering that Sec.200A is only applicable for asst. year 2010-11 and no such provision was there for earlier asst. years, whether income-tax dept. can be justified in sending demand after expiry of one year.

 

Further whether Section 201(1A) and 201(2) can be invoked by income-tax dept. if intimation u/s 200A is not sent within the time-limit. If yes, what is the legal significance of putting a time limit for sending intimation u/s 200A.

 

Thanks/J K Bubna

 

 

[rjtckg...@gmail.com]