JAINCO DEVELOPERS (P) LTD.,NEW DELHI vs. ACIT, CIRCLE- 13(1), NEW DELHI

ITA 5382/DEL/2018Status: DisposedITAT Delhi17 May 2024AY 2012-13Bench: SHRI M. BALAGANESH (Accountant Member), SHRI VIMAL KUMAR (Judicial Member)6 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that any tax paid or sought to be paid after the expiry of the financial year should be construed as self-assessment tax, not advance tax. It ruled that the assessee's request for adjustment of seized fixed deposits on 11.04.2012 must be treated as payment towards self-assessment tax liability. Citing a judicial precedent and Explanation 2 to Section 132B, the Tribunal directed the AO to adjust the seized fixed deposits against the self-assessment tax payable by the assessee with effect from 11.04.2012 and recompute the interest under Section 234B accordingly. The ground regarding limitation of the rectification order was left open as relief was granted on merits.

What were the facts?

During a search operation, fixed deposit receipts were seized from the assessee. The assessee requested adjustment of these seized deposits first against advance tax and later, in a belatedly filed Income Tax Return, against self-assessment tax. The Assessing Officer denied credit for the seized deposits and charged interest under Section 234B, subsequently rejecting a rectification application under Section 154 citing belated return filing and an invalid request for advance tax adjustment after the financial year end.

What were the issues?

Whether the assessee is entitled to credit for seized fixed deposits towards self-assessment tax liability, despite a belated return filing and initial request for advance tax adjustment after the financial year, and whether interest u/s 234A/234B should be recomputed.

Which sections of the Income-tax Act were involved?

Section 154,Section 143(3),Section 139(4),Section 234A,Section 234B,Section 132B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “C”: NEW DELHI

Before: SHRI M. BALAGANESH & SHRI VIMAL KUMAR

For Appellant: Shri Saurav Rohtagi, CA
For Respondent: Shri Sandip Kumar Mishra, Sr. DR
Hearing: 14/05/2024Pronounced: 17/05/2024

PER M. BALAGANESH, A. M.:

1.

The appeal in ITA No. 5382/Del/2018 for AY 2012-13, arises out of the order of the Commissioner of Income Tax (Appeals)-5, New Delhi [hereinafter referred to as ‗ld. CIT(A)‘, in short] in Appeal No. DEL/CIT(A)-5/2017-18 dated 28.06.2016 against the order of assessment passed u/s 154/143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‗the Act‘) dated 04.07.2017 by the Assessing Officer, ACIT, Circle-13 (2), New Delhi (hereinafter referred to as ‗ld. AO‘).

2.

The assessee has raised the following grounds of appeal before us:-

―1. That under the facts and circumstances, the application U/s.154 dated 06.04.2015 since, was mandated to be disposed off on or before 31.10.2015, however disposed off vide orde

The order continues below.

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