Interest demand by tax department on lost dd

Querist : Anonymous (Querist) 12 May 2023 This query is : Resolved
Interest Demand by Tax department on lost DD, sent to department via Courier
It is come to knowledge that the DD sent by courier 2 years back was not received by department. Taxes are immediately paid via fresh DD once get to know. Now department is asking for interest. we have not used that money for those 2 years, it was some where in suspense of bank. Is the demand of department for Interest tenable.

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A taxpayer sent a Demand Draft (DD) to the tax department two years ago, but it was lost in transit. Upon discovering this, the taxes were immediately paid with a new DD. The tax department is now demanding interest on the delayed payment. The taxpayer argues they did not use the funds, which remained in a bank suspense account. Experts suggest that while the department is legally entitled to interest on delayed payments, the taxpayer should present their case to the department, explaining the circumstances of the lost DD, which may lead to a favourable consideration.

Querist : Anonymous (Querist) 12 May 2023
please suggest any case law, if know to any

T. Kalaiselvan, Advocate (Expert) 13 May 2023
If the tax was not paid on time and paid at a later date, it would be proper and legally correct for the department to collect interest over the delayed payment made.
You may state that you have not utilised that amount whereas the department has not received the amount due to it hence it cannot be blamed for imposing interest over the delayed payment.

ashok kumar singh (Expert) 14 May 2023
you have to agitate your grievances before the concerned tax department, showing the real cause of happening and as such you are not in liability of any delay occurrence, so far. certainly on consideration of the fact the concerned tax department will do the needful.

Dr J C Vashista (Expert) 14 May 2023
I agree with the expert opinion and advise of Mr. Ashok Kumar Singh.

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