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Facts
The assessee's appeal before the CIT(A) was dismissed due to a deficiency in appeal fee (paid Rs. 250 instead of Rs. 1000). The core grievance of the assessee relates to the incorrect computation of interest under Section 234B, as the entire tax liability was claimed to have been paid by 01/07/2023 through an updated return of income.
Held
The Tribunal observed that while the CIT(A) dismissed the appeal for non-payment of the full appeal fee, the underlying issue of interest calculation under Section 234B required reconsideration. The ITAT remitted the matter back to the CIT(A), directing them to decide the interest computation after the assessee pays the remaining appeal fee of Rs. 750 within one month, taking into account the tax payment on 01/07/2023.
Key Issues
The key issues were the summary dismissal of the appeal by the CIT(A) for deficient appeal fee and the correct computation of interest under Section 234B, considering the tax payment date from an updated return of income.
Sections Cited
234B, 143(1), 234C
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Income Tax Appellate Tribunal, Hyderabad ‘ DB-B ‘ Bench, Hyderabad
Before: Shri Vijay Pal Rao, Vice-Shri Madhusudan Sawdia
Per Vijay Pal Rao, Vice President
This appeal filed by the assessee is directed against the order dated 22/01/2025of the learned CIT (A)-NFAC Delhi, for the A.Y.202-23.
The assessee has raised the following grounds of appeal:
ITA 565 of 2025 Ramakrishna Tarangambaoi
The only grievance raised by the assessee in this appeal is regarding wrong computation of interest u/s 234B of the Act. The learned AR of the assessee has submitted that the assessee has paid the entire tax by filing the updated return of income as on 1/7/2023 whereas the Assessing Officer has computed interest u/s 234B for the entire period. He has referred to page 8 of the order passed by the CPC u/s 143(1) of the Act and submitted that the CPC has mentioned in the order itself that the entire tax was paid by the assessee as on 1/7/2023. Thus, the learned AR has pleaded that the Assessing Officer may be directed to compute the interest u/s 234B of the Act only up to 30th June, 2023. He has further submitted that the interest u/s 234C is consequential.
On the other hand, the learned DR has submitted that the appeal of the assessee was dismissed by the learned CIT (A) due to deficiency in the appeal fee. The assessee has paid only
ITA 565 of 2025 Ramakrishna Tarangambaoi Rs.250/- as appeal fee as against Rs.1000/-. Therefore, the appeal of the assessee was dismissed in limine by the learned CIT (A) when it was found that the assessee has not paid the requisite appeal fee.
We have considered the rival contentions as well as the relevant material available on record. The learned CIT (A) while passing the impugned order has taken note of the fact that the assessee has not paid the requisite amount of appeal fee as the assessee has paid only Rs.250/- as appeal fee against Rs.1000/- applicable. Thus, the learned CIT (A) has dismissed the appeal of the assessee in limine due to deficient appeal fee. Since the issue involved in the appeal is only regarding the calculation of the interest u/s 234B up to the date of 1/7/2023 when the assessee has paid the entire tax while filing the updated return of income. This fact is manifest from the order u/s 143(1) of the Act itself. However, the computation of interest u/s 234B has been made without considering the tax liability of updated income as on 1/7/2023. Accordingly, we remit this issue to the record of the learned CIT (A) for deciding the same after considering the payment of the entire tax by the assessee as on 1/7/2023. Since the assessee has not paid the requisite appeal fee, accordingly, the assessee is directed to pay the deficient appeal fee of Rs.750/- within a period of one month from the date of this order. Accordingly, after the full payment of the appeal fee, the learned CIT (A), shall decide the issue of computation of interest u/s 234B
ITA 565 of 2025 Ramakrishna Tarangambaoi of the Act based on the fact that the assessee has paid the tax liability as on 1/7/2023.
In the result, appeal filed by the assessee is allowed for statistical purposes.