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Facts
The assessee company filed its return for AY 2023-24 declaring NIL income and a book profit of Rs. 10,41,48,658/-. The CPC's intimation charged interest under sections 234B and 234C which the assessee disputed. The CIT(A) dismissed the appeal for non-payment of admitted tax.
Held
The Tribunal noted that the assessee had paid advance and self-assessment tax. The orders of the lower authorities were set aside with a direction to the JAO to rework the interest calculations under sections 234B and 234C after giving the assessee an opportunity of hearing.
Key Issues
Whether the appeal was maintainable when the assessee disputed the calculation of interest under sections 234B and 234C, and whether the CIT(A) erred in dismissing the appeal without considering the tax payment made by the assessee.
Sections Cited
143(1), 234B, 234C, 115JB, 250(4)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: DR. BRR Kumar & Shri T. R. Senthil Kumar
Assessment Year 2023-24 Nirma Credit & Capital Income Tax Officer Pvt. Ltd. Ward-3(1)(1), Nirma House, Vs Ahmedabad Near Income Tax Circle, Ashram Road, Ahmedabad-380009 PAN: AAACN5351A (Appellant) (Respondent) Assessee Represented: Shri Hemanshu Shah, A.R. Revenue Represented: Shri Rameshwar P Meena, Sr. D.R. Date of hearing : 11-11-2025 Date of pronouncement : 13-11-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-
This appeal is filed by the Assessee as against the appellate order dated 28.11.2024 passed by the Addl. Commissioner of Income Tax/JCIT (Appeals)-4, Kolkata as against the intimation order dated 24-11-2023 passed under section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2020-21.
A.Y. 2023-24 Page No 2 Nirma Credit & Capital Pvt. Ltd. vs. ITO
The Grounds of Appeal raised by the assessee are as follows: 1) In law and in facts and circumstances of the Appellant's case, the Learned Addl/Jt. Commissioner of Income-tax (Appeals) has grossly erred in points of law and facts. 2) In law and in facts and circumstances of the Appellant's case, the Learned Addl./Jt. Commissioner of Income-tax (Appeals) has grossly erred in dismissing appeal on the ground that appellant did not pay Self assessment tax. The facts of appellant's case are totally different. Appellant did pay Self assessment tax due as per return of income for Rs 1,60,00,000 and 2,00,000. Challans are enclosed. The ground of the appellant before Ld. CIT (A) was against charging interest u/s 234C of I.T. Act for Rs.7,93,284/-on capital gain arose on 30-03-2023. Hence interest u/s 234 C cannot be charged up to 15-03-2023. 3) Your appellant reserves the right to add, alter, amend all or any of the above grounds of appeal as may be advised from time to time.
2.
Brief facts of the case is that the appellant is a Company filed its Return of Income for the Asst. Year 2023-24 on 06-10-2023 declaring total income NIL and book profit u/s. 115JB of the Act of Rs.10,41,48,658/-. Intimation u/s. 143(1) was passed by CPC on 24-11-2023 determining total income at Nil and book profit u/s. 115JB as Rs.10,41,48,658/-. Interest u/s. 234B of the Act of Rs.5,50,756/- charged instead of Rs.4,75,631/-. Interest u/s. 234C of the Act was wrongly charged at Rs. 7,93,284 and demand Tax of Rs. 8,32,970/-.
3. Aggrieved against the intimation, assessee filed an appeal before Ld. Addl.CIT/JCIT (Appeals) who dismissed the appeal on the ground that the admitted tax and interest was not deposited by the assessee u/s. 250(4) of the Act and the appeal is not maintainable.
A.Y. 2023-24 Page No 3 Nirma Credit & Capital Pvt. Ltd. vs. ITO
Ld. Counsel appearing for the assessee Shri Hemanshu Shah submitted before us Computation of Total Income, and also brought to our notice that the assessee paid advance tax of Rs. 8,55,000/- and self assessment tax paid of Rs. 1,60,00,000/- on 30-06-2023 which is resulting in a refund of Rs.445/-. Without considering the same, CPC wrongly calculated u/s. 234B and 234C interest, whereas Addl. CIT(A) dismissed the appeal for non payment of admitted tax. Therefore requested to set-aside the matter back to the file of Jurisdictional Assessing Officer to rework the calculation u/s. 234B and 234C respectively.
Ld. D.R. appearing for the Revenue has no objection in setting aside the matter back to the file of JAO.
Recording the above submissions of both parties, the orders passed by lower authorities are hereby set-aside with a direction to the JAO to rework the interest chargeable u/s. 234B and 234C of the Act in accordance within the provisions of law by giving proper opportunity of hearing to the assessee.
In the result, the appeal filed by the assesse is allowed for statistical purpose.