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Income Tax Appellate Tribunal, HYDERABAD BENCH “A”, HYDERABAD
This appeal is filed by the assessee against the order of the Ld. CIT(A)-11, Hyderabad in appeal No. 76/2016-17/DCIT CC-1(2)/CIT(A)- 11, Hyd dated 31/01/2018 passed U/s. 143(3) r.w.s 153A and U/s. 250(6) of the Act for the A.Y. 2008-09.
The assessee has raised four grounds in his appeal and they are extracted herein below for reference:
“1. The order of the Ld. CIT(A) is erroneous in law as well as facts of the case.
2. The Ld. CIT(A) ought to have observed that the action of the Assessing Officer with regard to levy of interest U/s. 234A, B, CIT(A) & 234A(3) of the Act was in violation of the provisions of the Act and therefore ought to have directed the assessing Officer to delete the same.
3. The Ld. CIT(A) ought to have held that in the facts and circumstances of the case levy of interest U/s. 234A, B, C and 234A(3) was not called for and therefore ought to have deleted the same. Any other ground will be raised at the time of hearing.” 4.
Brief facts of the case are that the assessee is an individual, who is a partner in a firm named M/s. Amsri Builders and also a Director and partner in certain companies / firms of M/s. AMSRI Group, filed his return of income for the A.Y. 2008-09 on 5/3/2010 declaring total income at Rs. 2,16,31,780/-. A search and seizure operation U/s. 132 was conducted in the assessee’s residential premises and AMSRI Group and its associate concerns on 27/12/2013. Thereafter, in response to the notice U/s. 153A of the Act, the assessee filed his return of income on 10/08/2015 declaring the same total income of Rs. 2,16,31,780/- as declared in the earlier return filed on 5/3/2021. Subsequently, notices U/s. 143(2) and U/s. 142(1) were issued and on verification and examination of the details furnished by the assessee, the Ld. A.O. accepted the income returned by the assessee and passed assessment order U/s. 143(3) r.w.s 153A of the Act vide order dated 31/3/2016. However, while computing the total income, the Ld. A.O. levied interest U/s. 234A (Rs. 14,58,972/-); U/s. 234B (Rs. 55,47,347/-); U/s. 234C (Rs. 2,69,910/-) and interest U/s. 234A(3) (Rs.6,56,537/-) aggregating to Rs. 79,32,766/-. On appeal the Ld. CIT(A) placing reliance on the decision of the Hon’ble Supreme Court in the case of CIT vs. Anjum Ghaswalla 252 ITR 1 (SC) held that levy of interest U/s.234A/B/C of the Act is mandatory and consequential in nature. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before the Tribunal.
At the outset the Ld. AR submitted that the Ld. A.O has erroneously computed and levied the interest U/s. 234A, B, C and U/s. 234A(3) of the Act. The Ld. AR further submitted the computation of interest leviable U/s. 234A, B & C of the Act which is reproduced for reference:
“Return filing date: 31/03/2010 Interest calculation U/s. 234A, 234B & 234C (i) Interest U/s. 234A for 18 months (ie from Oct-2008 to March – 2010) Interest @ 1% per Month amounts to Rs. Rs. 13,13,064 72,948/- per month * 18 months (ii) Interest U/s. 234B for 24 Months (ie from April 2008 to March 2010 Interest @ 1% per month amounts to Rs. Rs. 17,50,752 72,948/- per month * 24 months (iii) Interest U/s. 234C (65652 + 131307 + Rs. 2,69,907 72948) Total interest U/s. 234A, 234B & 234C Rs. 33,33,723 The Ld. AR thereafter pleaded that the matter may be remitted back to the file of the Ld. AO to verify the computation & levy of interest U/s. 234A, B,C & 234A(3) of the Act submitted by the assessee. On the other hand, Ld. DR strongly argued in support of the orders of the Ld. Revenue Authorities.
We have heard the rival submissions and carefully perused the material available on record and We are of the view that the computation of interest U/s. 234A, B,C & 234A(3) of the Act submitted before us by the Ld. AR is required to be verified and reconsidered by the Ld. Revenue Authorities. Therefore, in the interest of justice we hereby remit the matter back to the file of the Ld. AO for de-novo consideration.
5.(i). In the result, appeal of the assessee is allowed for statistical purposes as indicated herein above.
Pronounced in the open Court on the 04th October, 2021.