MADHUR BAJAJ CHARITABLE TRUST,MUMBAI vs. WARD 25(2)(1), KAUTILYA BHAVAN, MUMBAI, MUMBAI

In this appeal, the assessee has raised the following grounds: - “I. INTEREST UNDER SECTION 234A, 234B AND 234C OF THE ACT:

In its appeal before the learned Addl./Joint CIT(A) against the intimation issued under section 143(1) of the Act, the assessee submitted that it received substantial dividend income in the month of March 2020 and hence, could not pay advance tax in respect of such dividend income prior to 15.03.2020. The learned Addl./Joint CIT(A), vide impugned order, dismissed the appeal filed by the assessee and held that the assessee did not pay the entire tax liability arising on account of dividend received by it on 09.03.2020 by the time

During the hearing, the learned Authorised Representative (“learned AR”) submitted that the assessee, during the relevant financial year, i.e., 2019-20, paid advance tax on 11.06.2019, 12.09.2019, 11.12.2019 and 11.03.2020. The learned AR further submitted that on 20.08.2020, the assessee also paid self-assessment tax. The learned AR submitted that while computing its total tax liability for the year under consideration, the assessee computed interest under section 234C of the Act at Rs.21,855/-. However, vide intimation issued under section 143(1) of the Act, the same was computed at Rs.1,05,960/-. The learned AR submitted that while paying the advance tax on 11.03.2020, the assessee also took into consideration the dividend income received on 09.03.2020. Therefore, after taking into consideration the advance tax paid in the entire year, the income amounting to Rs.15,39,322/- remained on which the tax was payable. Accordingly, on the said income, the assessee computed interest under section 234C at Rs.21,855/-. The learned AR further submitted that vide intimation issued under section 143(1), interest of Rs. 30,786/- was levied under section 234A of the Act while the assessee computed the said interest at Rs.15,393/-. By referring to the CBDT Circular No.9 of 2021 dated 20.05.2021, the learned AR submitted that since the due date for filing the original return, prior to extension, was 31.07.2020 and the assessee paid the self-assessment tax on 28.08.2020, the interest under section 234A of the Act should be computed

On the other hand, the learned Departmental Representative (“learned DR”) vehemently relied upon the order passed by the learned Addl./Joint CIT(A).

We have considered the submissions of both sides and perused the material available on record. At the outset, it is evident that there is no dispute amongst the parties regarding the fact that interest under section 234A and section 234C of the Act is leviable in the present case. However, as vide intimation issued under section 143(1) of the Act, the interest under the aforesaid sections was levied at a higher amount, the assessee is aggrieved. As regards the interest levied under section 234C of the Act, the assessee has provided a detailed working for arriving at an interest of Rs. 21,855/- on page 13 of the paper book. However, there is no working for the computation of interest of Rs. 1,05,963/- under section 234C of the Act by the AO-CPC. From the details of advance tax and self-assessment paid by the assessee, as noted at page no.7 of the impugned order, we find that the correct details of tax paid have been taken into consideration by the Revenue. Thus, as per the assessee, after taking into consideration the total advance tax of Rs. 1,36,14,000/- during the relevant financial year, only an amount of Rs. 15,39,322/- remained in balance on which tax is to be levied, and the same was not covered while paying the advance tax for the relevant year. As the

Further, as regards the levy of interest under section 234A of the Act, we are of the considered view that this issue also requires factual verification in the light of the relevant statutory provisions and CBDT Circular. Therefore, the computation of interest under section 234A of the Act is also restored to the file of the Jurisdictional AO for de novo adjudication, as per law, after taking into consideration the relevant details.

Further, for completeness, we also restore the computation of interest under section 234B of the Act to the file of the AO for de novo adjudication, as per law, after considering all the relevant details. With the above direction, the impugned order is set aside, and all the grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 11/05/2026