SHRI SANWAR MAL JAIN,KOLKATA vs. ITO, WARD - 4(2), KOLKATA

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ITA 6/KOL/2019Status: DisposedITAT Kolkata01 January 2020AY 2016-172 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 assessee is a senior citizen, he is not liable to pay advance tax for the assessment year under consideration. Consequently, the levy of interest under Section 234B is erroneous and does not arise.

What were the facts?

The assessee, a senior citizen, was levied interest under Section 234B of the Income-tax Act, 1961, for the assessment year 2016-17. The assessee contended that senior citizens are not liable to pay advance tax and thus interest under Section 234B should not be levied.

What were the issues?

Whether interest under Section 234B can be levied on a senior citizen who is not liable to pay advance tax.

Which sections of the Income-tax Act were involved?

Section 234B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH: KOLKATA

Before: Shri A. T. Varkey, JM & Dr. A. L. Saini, AM]

Hearing: 16.12.2019Pronounced: 01.01.2020

ORDER Per Shri A. T. Varkey, JM This appeal preferred by the assessee against the order of Ld. CIT(A)-19, Kolkata dated 13-09-2018 for assessment years 2016-17.

2.

The main grievance of the assessee is that despite he is a senior citizen and since senior citizen is not liable to pay advance tax, still the AO has levied interest u/s. 234B of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) which is an erroneous action. At the time of hearing, none appeared before us, however Adv. Shri S.M. Surana & Shri Harshvardhan Bhardwaj, FCA, assisted as Amicus curiae and submitted that in the relevant AY, Sr. Citizen need not pay any advance tax. We note that the assessee is a senior citizen and since he is a senior citizen, he is not liable to pay advance tax in the AY under consideration i.e. AY 2016-17so, question of levying interest u/s. 234B of the Act does not arise. Therefore, we delete the addition and allow this appeal of assessee.

Shri Sanwar Mal Jain., AY-2016-17 3. In the result, the appeal of assessee is allowed.

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