M/S VINUTHNA SECURITIES PVT LTD ,MUMBAI vs. INCOME TAX OFFICER WARD, 1(3)(4), MUMBAI
IN THE INCOME-TAX APPELLATE TRIBUNAL “F” BENCH,
MUMBAI
BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER
&
SMT. RENU JAUHRI, ACCOUNTANT MEMBER
आयकर अपील सं./ITA No.2705/MUM/2024
(निर्धारण वर्ा / Assessment Year :2008-09)
Vinuthna Securities Pvt
Ltd
227 Swastik Plaza, Pokhrna
Road No. 1, Subhash Nagar,
Thane 400601. v/s.
बिधम
Income
Tax
Officer
Ward 1(3)(4), Mumbai
Income Tax Officer Ward
1(3)(4),
Mumbai,
Aaykar
Bhavan 400601
स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AABCV1025E
Appellant/अपीलधर्थी
..
Respondent/प्रनिवधदी
निर्ााररती की ओर से /Assessee by:
Shri. Paras Jain
रधजस्व की ओर से /Revenue by:
Ms. Kavitha Kaushik (SR DR)
सुिवधई की िधरीख / Date of Hearing
03.04.2025
घोर्णध की िधरीख/Date of Pronouncement
07.04.2025
आदेश / O R D E R
PER RENU JAUHRI [A.M.] :-
This appeal is filed by the assessee against the order of the National
Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”]
dated 25/10/2017 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2008-09. 2. The assessee has raised the following grounds of appeal:
“On facts, in the circumstance of the case and in law:
Wrong juri iction under section 154
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M/s. Vinuthna Securities Pvt Ltd
The Commissioner of Income Tax (Appeals) NFAC (Henceforth the "CIT (A)") andthe Income Tax Officer, Ward 1(3)(4), Mumbai (Henceforth the "ITO") ((collectively referred to as the "Authorities Below" erredin holding that rectification proceedings under section 154 of the Income Tax Act, 1961 ("The Act") could be invoked in respect of matter entailing long drawn process reasoning as distinguished from mistakes apparent from the record viz levy of interest u/s 234A in reopened assessment in respect of period prior to filing of return of income u/s 147 of the Act.
The learned CIT (A) erred in passing the appeal order upholding the order by the ITO without providing effective opportunity to the appellant, of being heard and explains the case.
Without prejudice to the above, the "Authorities Below" erred in levying interest u/s 234A of the Act amountingto Rs 47, 44,783 in respect of period prior to filing of return of income tax.
The Appellant craves the leave to add, alter, modify or delete any one or more or all of the above grounds of appeal.”
Brief facts of the case are that, the assessee had not filed its return of income and therefore, a notice u/s. 148 was issued on 28/03/2015. Assessment was completed u/s. 147 r.w.s. 143(3) of the Act, vide order dated 31/03/2016 at an income of Rs. 77,67,080/-. Aggrieved with the order, assessee preferred an appeal before Ld. CIT(A) which is still pending as on date. Subsequently, Ld. AO noticed that interest u/s. 234A had not been correctly levied and therefore, he issued a notice u/s. 154 and later passed an order charging interest u/s. 234A of the Act. The assessee preferred an appeal against this rectification order dated 25/10/2017 before Ld. CIT(A). Ld. CIT(A), vide order dated 20/03/2024, has dismissed the appeal stating that the charging of interest u/s. 234A is mandatory and same will be increased and reduced when the income is finally
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A.Y. 2008-09
M/s. Vinuthna Securities Pvt Ltd determined. Aggrieved with the order of Ld. CIT(A), the assessee has filed an appeal before the ITAT.
4. At the outset, Ld. AR submitted that vide letter dated 06/02/2025, the assessee has made a request to either keep the appeal in abeyance till the disposal of the quantum appeal or to dispose of the appeal and grant leave to raise the issue as and when the quantum appeal is decided.
5. We have considered the rival submissions and perused the assessee’s application and other material on record. Since the charging of interest u/s.
234A is mandatory and the amount depends on the decision in the assessee’s quantum appeal which is pending before Ld. CIT(A), we allow the assessee’s request to dispose off the appeal made vide letter dated 06/02/2025. Accordingly, the appeal is dismissed with the directions to Ld. AO to recompute the interest u/s. 234A after the quantum appeal is decided.
6. In the result, appeal is dismissed.
Order pronounced in the open court on 07.04.2025. BEENA PILLAI
RENU JAUHRI
(न्यधनयक सदस्य/JUDICIAL MEMBER)
(लेखधकधर सदस्य/ACCOUNTANT MEMBER
Place: म ुंबई/Mumbai
दिन ुंक /Date 07.04.2025
दिव्य रमेश न ुंिग वकर/ स्टेनो
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आदेश की प्रनतनलनि अग्रेनित/Copy of the Order forwarded to :
1. अपीलार्थी / The Appellant
2. प्रत्यर्थी / The Respondent.
3. आयकर आयुक्त / CIT
4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT,
Mumbai
5. गार्ड फाईल / Guard file.
सत्यानित प्रनत ////
आदेशािुसार/ BY ORDER,
सहायक िंजीकार (Asstt.