ITO,WARD-1(1), JAMSHEDPUR vs. M/S- ANAND VIHAR PROMOTERS & DEVELOPERS (P) LTD., JAMSHEDPUR

PDF · subscribers
ITA 159/RAN/2015Status: DisposedITAT Ranchi28 February 2018AY 2010-113 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s deletion of interest charged under Section 234B on assessed income. The Tribunal followed the jurisdictional High Court's decision, which was also upheld by the Supreme Court.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting additions made on account of interest charged under Section 234B. The CIT(A) relied on a High Court decision stating interest cannot be levied on assessed income but only on declared income.

What were the issues?

Whether interest under Section 234B can be levied on assessed income or only on income declared in the return of income.

Which sections of the Income-tax Act were involved?

Section 234B

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: Shri J. Sudhakar Reddy & Shri S.S. Viswanethra Ravi

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI

Before: Shri J. Sudhakar Reddy, Accountant Member and Shri S.S. Viswanethra Ravi, Judicial Member

I.T.A No. 159/Ran/2015 A.Y 2010-11

Income Tax Officer Ward 1(3), Jamshedpur Appellant

Vs.

M/s. Anand Vihar Promoters & Developers PAN: AAFCA8771J Respondent

For the Appellant : Shri P.K. Mondal, JCIT, ld.DR For the Respondent : Shri Devesh Poddar, Advocate, ld.AR

Date of hearing : 22-02-2018 Date of pronouncement : 28 -02-2018

ORDER Per Bench:

This appeal by Revenue is against the order dt. 28-09-2015 of CIT(A), Jamshedpur for the assessment year 2010-11.

2.

The only issue is to be decided as to whether the CIT-A justified in deleting the additions made on account of charging of interest u/s. 234B of the Act in the facts and circumstances of the case.

3.

After hearing the rival submissions and perusing the record, we find that the ld. CIT-A deleted the addition on account of charging of entire interest of Rs.21,26,399/-charged u/s. 234B of the Act by relying on the decision of the Hon’ble Jurisdictional High Court in the case of Shri Ajay Prakash Verma in TA No. 38 of 2010 reported in 2013(1)TMI 140, which in turn, followed the law laid down by the Full Bench in the case of Smt. Tej Kumari reported in 114 Taxman 404 (PAT) (FB), where it was held that interest cannot be levied on assessed income and it can be levied only on the income declared in 1 ITA No. 159/Ran/2015

the return of income. The appellant Revenue challenged the same before the Hon’ble Supreme Court by way of a SLP which was dismissed by holding that there is no merits in the appeal vide its order dt. 01-08-2000. The ld. DR could not controvert the same.

4.

We further find the Co-ordinate Bench, ITAT, Ranchi in the case of RSB Industries Ltd(Formerly known as M/s. Lal Technologies Ltd) Vs. ACIT, ITA Nos. 199 & 200/Ran/2014 and 212 & 213/Ran/2014 for the A.Ys 2009-10 & 2010-11 and in the case of Shree Niwas Joshi Vs. ACIT, ITA Nos. 279 & 280/Ran/2016 for the A.Ys. 2001-02 & 2005- 06, copy of the same are on record, on similar set of facts and circumstances has disposed of the said issue in favour of assessee by dismissing the grounds of appeal of the revenue by following the decision of the Hon’ble Jurisdictional High Court of Jharkhand in the case of supra. We further find that the issue in hand, facts and circumstances of those cases of ITAT Ranchi are identical and similar.

5.

In view of above, and respectfully following the decision of the Hon’ble Jurisdictional High Court in the case of Ajay Prakash Varma supra, we are of the view that AO was not justified in charging the interest on assessed income and the CIT-A was correct in deleting the same and the order of CIT-A is upheld. Therefore, the solitary ground raised by the revenue in this regard is dismissed.

6.

In the result, the appeal of the revenue is dismissed.

Sd/- Sd/- J. Sudhakar Reddy S.S. Viswanethra Ravi Accountant Member Judicial Member

Dated :28-02-2018

2 ITA No. 159/Ran/2015

PP(Sr.P.S.) Copy of the order forwarded to: 1. Appellant – The ITO, Ward 1(1), 47 C.H Area, Jamshedpur-831001. 2 Respondent –M/s. Anand Vihar Promoters & Developers Pvt. Ltd 1st Floor, Muneshwari Bhawan, Contractor Area, Bistupur, Jamshedpur-831001. 3. The CIT(A), Ranchi 4. CIT , Ranchi 5. DR, ITAT Ranchi Benches, Ranchi.

/True Copy, By order,

Sr.PS ITAT, Ranchi

3 ITA No. 159/Ran/2015

More judgments on Section 234B

All 10,214 judgments and leading authorities on Section 234B →

Recent GST High Court judgments

Search GST case law →