NILESH ARJUN PAYGUDE,PUNE vs. ITO(IT) WARD 3, PUNE, PUNE

PDF · subscribers
ITA 375/PUN/2026Status: DisposedITAT Pune18 May 2026AY 2020-213 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CPC erred in calculating the interest under Section 234B up to the date of processing the return. The assessee had rightly calculated the interest up to the date of filing the updated return after paying the additional tax and interest.

What were the facts?

The assessee filed an updated return and calculated interest under Section 234B for 35 months. However, the CPC calculated the interest for 45 months, leading to a higher demand. The CIT(A) dismissed the appeal without considering the merits.

What were the issues?

Whether the interest under Section 234B was correctly calculated by the CPC, and if the CIT(A) erred in dismissing the appeal without considering the merits.

Which sections of the Income-tax Act were involved?

Section 139(1),Section 139(8A),Section 234B,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE

Before: HON’BLE MANISH BORAD & HON’BLE PAVAN KUMAR GADALE

For Respondent: Shri Pramod Shahakar, JCIT

आदेश / ORDER

PER MANISH BORAD, ACCOUNTANT MEMBER: The captioned appeal at the instance of assessee directed against the order Ld. Commissioner of Income Tax (Appeals) / National faceless Appeal Centre (NFAC) dated 27.11.2025 pertain to A.Y 2020-21 arising out of the intimation order framed u/s 143(1) of the Income Tax Act, 1961 (in short “the Act”) dated 30.12.2023. The Assessee has raised the following grounds of appeal: 1) 1. The Ld. CIT(A) erred in law and on facts in not condoning the delay in filing the appeal to CIT(A). 2) 2. The Ld. CIT(A) erred in dismissing the appeal as "not admitted" without considering the merits of the case.

ITA 375/PUN/2026 NILESH ARJUN PAYGUDE 3) 3. The Ld. AO (CPC) erred in calculating the interest u/s 3. The Ld. AO (CPC) erred in calculating the interest u/s 3. The Ld. AO (CPC) erred in calculating the interest u/s 3. The Ld. AO (CPC) erred in calculating the interest u/s 234B and raised a demand of Rs. 150940/ 234B and raised a demand of Rs. 150940/ 234B and raised a demand of Rs. 150940/- 2. The only grievance of the assessee is that the ld. CIT(A) The only grievance of the assessee is that the ld. CIT(A) The only grievance of the assessee is that the ld. CIT(A) The only grievance of the assessee is that the ld. CIT(A) erred in affirming the action of the CPC erred in affirming the action of the CPC erred in affirming the action of the CPC charging excess charging excess interest u/s 234B of the Act of Rs. 1,00,620/ interest u/s 234B of the Act of Rs. 1,00,620/ interest u/s 234B of the Act of Rs. 1,00,620/-.

3.

On the other hand, Ld. DR supported the order passed On the other hand, Ld. DR supported the order passed On the other hand, Ld. DR supported the order passed On the other hand, Ld. DR supported the order passed by the ld. CIT(A). by the ld. CIT(A).

4.

We have heard the rival contentions and perused the We have heard the rival contentions and perused the We have heard the rival contentions and perused the We have heard the rival contentions and perused the material placed before us. We observed that the assessee material placed before us. We observed that the assessee material placed before us. We observed that the assessee material placed before us. We observed that the assessee filed the regular return u/s 139(1) for A.Y 2020 ed the regular return u/s 139(1) for A.Y 2020 ed the regular return u/s 139(1) for A.Y 2020-21 on 21 on 07.012.2020 and subsequently filed the updated return u/s 07.012.2020 and subsequently filed the updated return u/s 07.012.2020 and subsequently filed the updated return u/s 07.012.2020 and subsequently filed the updated return u/s 139(8A) of the Act on 15.02.2023. The assessee calculated 139(8A) of the Act on 15.02.2023. The assessee calculated 139(8A) of the Act on 15.02.2023. The assessee calculated 139(8A) of the Act on 15.02.2023. The assessee calculated the interest u/s 234B of the Act for 35 months the interest u/s 234B of the Act for 35 months the interest u/s 234B of the Act for 35 months i.e from i.e from 01.09.2020 till 15.02.2023 01.09.2020 till 15.02.2023 on the additional tax liability and the additional tax liability and the additional tax liability and paid the interest at Rs. 3,52,170/ paid the interest at Rs. 3,52,170/ paid the interest at Rs. 3,52,170/-. However CPC in the CPC in the intimation u/s 143(1 intimation u/s 143(1)(a) of the Act calculated the of the Act calculated the interest u/s interest u/s 234B of the Act at Rs. 4,52,790/ 234B of the Act at Rs. 4,52,790/- for for 45 months i.e up to the 45 months i.e up to the date of processing of return date of processing of return on 30.12.2 30.12.2023 thereby charging hereby charging interest u/s 234B of the Act interest u/s 234B of the Act higher by Rs. 1,00,620/ by Rs. 1,00,620/-. We We find that the CPC has grossly erred in calculating the interest find that the CPC has grossly erred in calculating the interest find that the CPC has grossly erred in calculating the interest find that the CPC has grossly erred in calculating the interest u/s 234B of the Act up to the date of processing the return u/s 234B of the Act up to the date of processing the return u/s 234B of the Act up to the date of processing the return u/s 234B of the Act up to the date of processing the return i.e 30.12.2023. Asessee has rightly calculated the i.e 30.12.2023. Asessee has rightly calculated the i.e 30.12.2023. Asessee has rightly calculated the interest interest u/s 234B of the Act on the additional tax from 01.04.2020 u/s 234B of the Act on the additional tax from 01.04.2020 u/s 234B of the Act on the additional tax from 01.04.2020 u/s 234B of the Act on the additional tax from 01.04.2020 till the date of filing the updated return on 15.02.2023. It till the date of filing the updated return on 15.02.2023. It till the date of filing the updated return on 15.02.2023. It till the date of filing the updated return on 15.02.2023. It seems that CPC has calculated the alleged interest u/s 234B seems that CPC has calculated the alleged interest u/s 234B seems that CPC has calculated the alleged interest u/s 234B seems that CPC has calculated the alleged interest u/s 234B of the Act treating it that the assessee has not paid the tax of the Act treating it that the assessee has not paid the tax of the Act treating it that the assessee has not paid the tax of the Act treating it that the assessee has not paid the tax liability while filing the updated return. However the facts lity while filing the updated return. However the facts lity while filing the updated return. However the facts lity while filing the updated return. However the facts placed on record indicates that assessee has filed updated placed on record indicates that assessee has filed updated placed on record indicates that assessee has filed updated placed on record indicates that assessee has filed updated return u/s 139(8A) of the Act after paying the return u/s 139(8A) of the Act after paying the return u/s 139(8A) of the Act after paying the additional tax tax liability including the interest u/s 234B of the Act and other liability including the interest u/s 234B of the Act and other liability including the interest u/s 234B of the Act and other liability including the interest u/s 234B of the Act and other applicable inte applicable interest up to the date of filing of updated tax rest up to the date of filing of updated tax rest up to the date of filing of updated tax return and therefore the return and therefore the assessee has rightly assessee has rightly calculate ed interest u/s 234B of the Act up to the date of filing of interest u/s 234B of the Act up to the date of filing of interest u/s 234B of the Act up to the date of filing of interest u/s 234B of the Act up to the date of filing of updated return. Therefore finding of the ld. CIT(A) is updated return. Therefore finding of the ld. CIT(A) is updated return. Therefore finding of the ld. CIT(A) is updated return. Therefore finding of the ld. CIT(A) is 2

ITA 375/PUN/2026 NILESH ARJUN PAYGUDE reversed and the additional liability of reversed and the additional liability of reversed and the additional liability of interest u/s 234B of interest u/s 234B of the Act at Rs. 1,00,620/ the Act at Rs. 1,00,620/- is hereby deleted. Accordingly the is hereby deleted. Accordingly the is hereby deleted. Accordingly the grounds of appeal of appeal raised by the assessee are allowed. raised by the assessee are allowed.

5.

In the result, the appeal In the result, the appeal of the assessee is allowed. the assessee is allowed.

Order pronounced in the open court on Order pronounced in the open court on Order pronounced in the open court on 18.05.2026.

Sd/- Sd/- PAVAN KUMAR GADALE PAVAN KUMAR GADALE MANISH BORAD JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER Pune Dated: 18.05.2026 18.05.2026

More judgments on Section 139(1)

All 8,117 judgments and leading authorities on Section 139(1) →

Recent GST High Court judgments

Search GST case law →