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Income Tax Appellate Tribunal, “B” BENCH, MUMBAI
Before: SHRI R.C. SHARMA, AM & SHRI SANDEEP GOSAIN, JM
सुनवाई की तायीख / : 19/07/2016 Date of Hearing घोषणा की तायीख / : 27/07/2016 Date of Pronouncement आदेश / O R D E R Per R.C. SHARMA, A. M.: This is an Appeal by the Assessee directed against the Order by the Commissioner of Income Tax (Appeals)- 28, Mumbai (‘CIT(A)’ for short) dated 01.10.2014 for the assessment year (A.Y.) 2010-11.
In this appeal assessee is aggrieved for charging of interest u/s 234B and 234C of the Act.
(A.Y. 2010-11) Venkatraman Jambunathan Vs. ITO Notice was issued to the assessee fixing the appeal on 19th July,2016 the 3. notice was served and acknowledge but nobody attended on behalf of assessee therefore bench decided to dispose the appeal after considering the documents placed on record.
We have gone through orders of authorities below and found that assessee is a salaried employee who has filed his return of income claiming exemption on account of HRA receipt. During the course of scrutiny the AO found that assessee has not submitted any documentary evidence to substantiate his claim of HRA. Accordingly exemptions so claimed was decline by AO. Even before CIT(A) the assessee has not produced any evidence to support actual payment of rent so as to entitle him for exemption on account of HRA received from employer. As a result of the disallowance so made AO levied interest u/s 234B and 234C. It was contention of assessee that since salary was liable to deduction of tax at source by the employer no interest u/s 234B and 234C should be charged. We found that the interest has been charged on the shortfall of tax not because of employers failure deduct correct tax at source but because of assessee’s failure to substantiate its claim of exemption so confirmed by CIT(A). Assessee has not raised any ground in the appeal so filed before us with regard to decline of exemption of HRA, and has only claimed that no interest u/s 234B and 234C should be charged. We do not find any merit in assessee’s ground in so far as interest has been charged because
(A.Y. 2010-11) Venkatraman Jambunathan Vs. ITO of failure of assessee to substantiate its claim, and it is not attributable employer’s failure to deduct correct tax at source. The case laws cited in the grounds of appeal are not applicable to the facts of the case of the assessee. Accordingly we confirm the action of AO for charging interest 234B and 234C which is as per law.
5. In the result, appeal of the assessee is dismissed. Order pronounced in the open court on 27 July, 2016 Sd/- Sd/- (SANDEEP GOSAIN) (R.C. SHARMA) न्मायमक सदस्म / Judicial Member रेखा सदस्म / Accountant Member भुंफई Mumbai; ददनांक Dated : 27.07.2016 Ps. Ashwini आदेश की प्रनिलऱपि अग्रेपषि/Copy of the Order forwarded to : अऩीराथी / The Appellant 1. प्रत्मथी / The Respondent 2. आमकय आमुक्त(अऩीर) / The CIT(A) 3. आमकय आमुक्त / CIT - concerned 4. ववबागीम प्रयतयनधध, आमकय अऩीरीम अधधकयण, भुंफई / DR, ITAT, Mumbai 5. गार्ड पाईर / Guard File 6. आदेशधिुसधर/ BY ORDER,