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Income Tax Appellate Tribunal, VISAKHAPATNAM “SMC” BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE
अपीलधथी की ओर से/ Appellant by : Shri G.V.N.Hari, AR प्रत्यधथी की ओर से / Respondent by : Shri Madhukar Aves, DR सुनवधई की तधरीख / Date of Hearing : 08.11.2023 घोर्णध की तधरीख/Date of Pronouncement : 29.11.2023 आदेश /O R D E R Per Shri Duvvuru RL Reddy, Judicial Member :
These appeals are filed by the assessee against the orders of Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC), Delhi vide orders dated 13.03.2023, arising out of orders passed u/s 143(1) and 154 of the Income Tax Act, 1961 (in short ‘Act’) dated 08.06.2022 and 20.06.2022 respectively for the Assessment Year (A.Y.) 2021-22. Since the grounds raised in these appeals are identical, these appeals are clubbed, heard together and a common order is being passed for the sake of convenience as under. Facts are extracted from I.T.A.No.128/Viz/2023, A.Y.2021-22.
2. Brief facts of the case are that the assessee filed return of income u/s 139 of the Act on 04.02.2022, declaring total income of Rs.6,61,66,180/- for the A.Y.2021-22. The return of income was processed u/s 143(1) of the Act on 08.06.2022 enhancing the interest u/s 234A and interest u/s 234B. As the assessee is subject to audit u/s 44AB, the original due date for filing of return of income u/s 139(1) for the A.Y.2021-22 was extended to 15.03.2022, subject to the condition of payment of interest u/s 234A if the self assessment tax payable u/s 140A exceeds Rs.1,00,000/-. The assessee paid self assessment tax of Rs.1,50,00,000/- on 28.09.2021 and Rs.23,33,100/- on 30.11.2021. The Ld.CIT(A) observed that the assessee had paid self assessment tax much after the end of the F.Y.2020-21, which is against the express provision of section 234A. Accordingly, the Ld.CIT(A) dismissed the ground relating to charging of interest u/s 234A.
With regard to interest paid u/s 234B, intimation u/s 143(1) dated 08.06.2022 was served on the assessee computing the interest at Rs.9,73,933/-, whereas, as per return of income, the interest u/s 234B was computed at Rs.9,33,272/- with the difference of Rs.40,661/-. When the matter was brought before the CIT(A), the Ld.CIT(A) partly allowed the appeal of the assessee, directing the AO to verify the computation on interest charged u/s 234B as per provisions of law.
Aggrieved by the order of the Ld.CIT(A), the assessee raised appeal before the Tribunal by raising the following grounds of appeal :
The order of the learned Commissioner of Income Tax (Appeals) is contrary to the facts and also the law applicable to the facts of the case.
The learned Commissioner of Income Tax (Appeals) ought to have directed the assessing officer to revalue the excess interest of Rs.88,045/- u/s 234A and Rs.40,661/- u/s 234B of the Act. 3. The Learned Commissioner of Income Tax (Appeals) ought to have held that the CPC erroneously computed the interest at Rs.92,204/- u/s 234A and Rs.9,73,933/- u/s 234B of the Act as against the correct interest of Rs.4,159/- u/s 234A and Rs.9,33,272/- u/s 234B of the Act. 4. Any other grounds may be urged at the time of hearing. 4. Ground No.1 and 4 are general in nature which does not require specific adjudication.
Ground No.2 and 3 are related to computation of interest at Rs.92,204/- u/s 234A and Rs.9,73,933/- u/s 234B of the Act. The Ld.AR filed a paper book before the Tribunal and inviting our attention to CBDT Circular No.02/2015 dated 10.02.2015 at page No.26 of the paper book, with regard to chargeability of interest under section 234A of the Income Tax Act, 1961 on self-assessment tax paid before the due date of filing of return of income, the Ld.AR submitted that as held by the Hon’ble Supreme Court in the case of CIT Vs. Prannoy Roy, 309 ITR 231 (2009) that the interest under section 234A of the Act on default in furnishing return of income shall be payable only on the amount of tax that has not been deposited before the due date of filing of the income-tax return for the relevant assessment year. The Board has decided that no interest under section 234A of the Act is chargeable on the amount of self- assessment tax paid by the assessee before the due date of filing of return of income. The Ld.AR further submitted that in the instant case, the return of income was filed on 04.02.2022 declaring total income of Rs.6,61,66,180/- and self assessment tax of Rs.1,50,00,000/- was paid on 28.09.2021 and Rs.23,33,100/- was paid on 30.11.2021 within the due date extended till 15.03.2022. He, therefore, submitted that as per the CBDT circular ibid, the interest charged is liable to be deleted.
Per contra, the Ld.DR submitted that the Ld.CIT(A) is justified in dismissing the ground with regard to charging of interest u/s 234A as the interest was paid much after the end of the F.Y.2020-21. He, therefore, pleaded to uphold the order of the Ld.CIT(A) dismiss the ground raised by the assessee.
I have heard both the parties and perused the material available on record. As is evident from the records, it is undisputed fact that the assessee filed return of income on 04.02.2022 and paid self assessment tax of Rs.1,50,00,000/- on 28.09.2021 and Rs.23,33,100/- on 30.11.2021 within the due date extended till 15.03.2022 vide CBDT Circular No.01/2022 dt.11.01.2022. As per CBDT Circular 2/2015 dated 10.02.2015, no interest u/s 234A of the Act is chargeable on the amount of self-assessment tax paid by the assessee before the due date of filing of return of income. As per CBDT Circular, it has been held by the Hon’ble Supreme Court in the case of CIT Vs. Prannoy Roy, 309 ITR 231 (2009) that the interest under section 234A of the Act on default in furnishing return of income shall be payable only on the amount of tax that has not been deposited before the due date of filing of income tax return for the relevant assessment year. The Board has decided that no interest under section 234A of the Act is chargeable on the amount of self-assessment tax paid by the assessee before the due date of filing of return of income. In view of the decision of the Hon’ble Supreme Court and on the facts and circumstances of the case, interest demand raised u/s 234A in intimation u/s 143(1) is without any basis and against the provisions of law. It is evident that the assessee filed return of income and paid self assessment tax well within the timeline extended. I, therefore, set aside the order passed by the Ld.CIT(A) and direct the AO to delete the interest charged u/s 234A. Accordingly, the ground raised by the assessee with regard to interest charged u/s 234A is allowed.
With regard to interest charged u/s 234B, the interest raised u/s 143(1) appears to be typographical error. I, therefore, remit the matter back to the file of the AO with a direction to examine and delete the excess interest computed if any at Rs.40,661/- u/s 234B. Accordingly, ground raised by the assessee with regard to excess interest charged u/s 234B is allowed for statistical purpose.
In the result, appeals of the assessee are partly allowed.
Order pronounced in the open court on 29th November, 2023. (दुव्वूरु आर.एल रेड्डी) (DUVVURU RL REDDY) न्याधयक सदस्य/JUDICIAL MEMBER Dated : 29.11.2023 L.Rama, SPS