DCIT, INTERNATIONAL TAXATION, DEHRADUN vs. M/S PARADIGM GEOPHYSICAL PTY LTD., DEHRADUN

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ITA 3016/DEL/2016Status: DisposedITAT Delhi15 November 2017AY 2011-123 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 held that since the additions forming the basis for charging interest under Section 234B were deleted, no interest could be charged. Consequently, the Assessing Officer himself computed the interest as Nil.

What were the facts?

The Revenue appealed against the deletion of interest charged under Section 234B. The Assessing Officer had initially made additions, leading to the interest charge. However, the Tribunal later deleted these additions.

What were the issues?

Whether interest under Section 234B is leviable when the additions on which it was based have been deleted by a higher authority.

Which sections of the Income-tax Act were involved?

Section 234B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES : F : NEW DELHI

Before: SHRI R.S. SYAL & SMT BEENA PILLAI

For Appellant: Shri Amit Arora &, Shri Vishal Mishra, CAs
For Respondent: Shri Atiq Ahmad, Sr. DR
Hearing: 14.11.2017

DCIT, International Taxation, Vs. Paradigm Geophysical Pty Ltd., C/o Nangia & Co., 3rd Floor, Circle-2, Aayakar Bhawan, 13-A, Subhash Road, NCR Plaza, Dehradun. New Cantt. Road, Dehradun. PAN: AADCP5999B (Appellant) (Respondent) Assessee By : Shri Amit Arora & Shri Vishal Mishra, CAs Department By : Shri Atiq Ahmad, Sr. DR Date of Hearing : 14.11.2017 Date of Pronouncement : 15 .11.2017 ORDER PER R.S. SYAL, VP: This appeal filed by the Revenue is directed against the order passed by the CIT(A) on 03.03.2016 in relation to the assessment year 2011-12.

2.

The only issue raised in this appeal is against the deletion of interest u/s 234B of the Income-tax Act, 1961 (hereinafter also called `the Act’).

3.

We have heard both the sides and perused the relevant material on record. It is observed that certain additions were made by the Assessing Officer in the assessment order passed by him. The Tribunal, vide its order dated 28.04.2017, a copy of which has been placed on record, deleted such additions. While giving effect to the order passed by the Tribunal, the Assessing Officer, vide his order dated 22.09.2017, has himself computed interest u/s 234B at Rs. Nil. In view of the fact that the very basis for charging of interest u/s 234B, being the additions made in the assessment order, ceases to exist, there can be no question of charging any interest.

4.

In the result, the appeal is dismissed as having become infructuous.

The decision was pronounced in the open court on 15th

November, 2017.

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