CHERAN TEXTILE WIND FARM PVT LTD,TIRUPUR vs. ITO, WARD 1(2), TIRUPUR

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ITA 815/CHNY/2019Status: DisposedITAT Chennai31 October 2019AY 2014-154 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the tax due was paid before the return was filed and was not less than the tax payable on the returned income, the levy of interest under Sections 234A and 234B was not justified. The Tribunal relied on the Supreme Court's decision in CIT vs. Pranoy Roy.

What were the facts?

The assessees paid their taxes after the due date but before filing their income tax returns. The CPC levied interest under Sections 234A and 234B, which the CIT(A) upheld. The assessees appealed this decision.

What were the issues?

Whether interest under Section 234A and 234B is leviable when tax is paid after the due date but before filing the return of income.

Which sections of the Income-tax Act were involved?

Section 234A,Section 234B

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: SHRI GEORGE MATHAN & SHRI S. JAYARAMAN

Hearing: 05.09.2019Pronounced: 31.10.2019

Heard together (2 matters)

I.T.A.No.815/CHNY/2019
I.T.A.No.816/CHNY/2019

Read from the judgment's own cause title. This page is filed under one of them.

Per contra, the ld.DR supported the orders of the lower authorities.

4.

We heard the rival submissions and gone through the Hon’ble Apex Court’s decision cited supra. Since the tax due had already been paid which was not less than the tax payable on the returned income which was accepted, the question of levy of interest does not arise. Therefore, we find merit in the appeals of the assessees and hence allow the appeals.

5.

In the result, both the assessees appeals are allowed.

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