FEROZE NAVAL PATCH ,MUMBAI vs. ITO WARD 19(1)(5), MUMBAI

This appeal by the assessee is preferred against the order of the ld. CIT(A)/ Addl./JCIT(A)-3, Delhi [hereinafter the ‘ld. CIT(A)’] dated 28/01/2025 pertaining to AY 2022-23.

The grievance of the assessee reads as under:- “1) In the facts and circumstances of the case and in law, the learned A.O. erred in incorrectly determining interest under section 234B to be Rs. 8,27,421/- instead of Rs. 2,40,219/- determined by the assessee while filing updated return for A.Y. 2022- 23. 2) In the facts and in the circumstances of the case and in law, the Learned A.O. erred in incorrectly determining the additional income-tax liability at Rs.9,46,215/- instead of Rs.8,33,038/-.”

None appeared on behalf of the assessee in spite of notice. We decided to proceed ex-parte.

The ld. D/R was heard at length. Case records carefully perused. 5. Briefly stated the facts of the case are that while processing the return of income u/s 143(1) of the Act interest u/s 234B of the Act was levied at Rs. 8,27,421/- whereas the claim of the assessee is that the interest should have been levied at Rs. 2,40,219/- as he has paid the self- assessment tax and the interest should have been charged up to the date of payment of tax u/s 140B of the Act. 6. We have carefully perused the impugned order of processing u/s 143(1) of the Act. In our considered opinion, the provisions of Section 234B(2) of the Act, have not been applied properly. The relevant provisions read as under:- “Interest for defaults in payment of advance tax. 234B. (1) …………………………….