MONOPOLY INNOVATIONS PRIVATE LIMITED,KHALPUR vs. NATIONAL E-ASSESSMENT CENTRE, DELHI

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ITA 8/PUN/2024Status: DisposedITAT Pune16 May 2024AY 2018-19Bench: SHRI S.S.GODARA (Judicial Member), SHRI INTURI RAMA RAO (Accountant Member)3 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the cause of action for challenging the interest under section 234E arose from the intimation under section 143(1), not the assessment order under section 143(3). Therefore, the appeal against the section 143(3) order on this issue was not maintainable.

What were the facts?

The assessee company filed its return of income, which was processed under section 143(1) and included interest under section 234E. A subsequent assessment under section 143(3) was completed without modifications. The assessee appealed against the levy of interest under section 234E.

What were the issues?

Whether an appeal against an assessment order under section 143(3) is maintainable for challenging interest levied in the intimation under section 143(1).

Which sections of the Income-tax Act were involved?

Section 234E,Section 143(1),Section 143(3),Section 200A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE

Before: SHRI S.S.GODARA & SHRI INTURI RAMA RAO

For Respondent: Shri Ramnath P. Murkunde
Hearing: 16.05.2024Pronounced: 16.05.2024

This is an appeal filed by the assessee directed against the order of National Faceless Appeal Centre, Delhi (NFAC) dated 22.03.2023 for the assessment year 2018-19.

2.

Briefly, the facts of the case are as under :

The appellant is a company engaged in the business of manufacturing of Vegetable oils, Animal oils and Fats. The Return of Income for the A.Y. 2018-19 was filed on 07.03.2019 declaring total income of Rs.94,43,800/-. The said return was processed u/s.143(1) on 14.06.2019 assessing the total income at Rs.97,30,372/- and also levying interest u/s.234E of the Income-tax Act, 1961 (hereinafter referred to as ‘The Act’). The case was selected for the scrutiny and the assessment came to be completed u/s.143(3) vide order dated 05.02.2021 without making any modification to the Intimation u/s.143(1) of the Act.

3.

Being aggrieved by the said assessment order, an appeal was filed before the CIT(A)/NFAC challenging the very levy of interest u/s.234E of the Act amounting to Rs.2,86,570/-. The CIT(A)/NFAC interpreting the machinery provisions of section 200A confirmed the action of the AO in levying the interest u/s.234E.

4.

Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal.

5.

When the appeal was called on, none appeared on behalf of the appellant despite due service of notice of hearing.

6.

The ld. Sr. DR placing reliance on the orders of the authorities below prayed for confirming the same.

7.

After hearing the ld. Sr.DR and perusing the relevant material, we proceed to dispose of the appeal on merits. The only issue that arises for our consideration in the present appeal is with regard to levy of interest u/s.234E of the Act. We find that in the present case interest was levied in the intimation u/s.143(1). Thus, the cause of action had arisen in the proceedings u/s.143(1) of the Act, not in the proceedings u/s.143(3) of the Act. If the assessee is aggrieved by the action of the CPC in levying interest u/s.234E, the only remedy is to challenge the intimation u/s.143(1) by following the process known to the law. Such issues cannot be raised in the order passed us.143(3) of the Act as it is mere consequential to the proceedings u/s.143(1). Therefore, the appeal is not maintainable, accordingly dismissed as not maintainable.

8.

In the result, the appeal filed by the assessee is dismissed. Order pronounced on this 16th day of May, 2024.

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