T.C. HEALTHCARE PVT LTD.,MEERUT vs. ACIT, CIRCLE-25(1), NEW DELHI

ORDER PER M. BALAGANESH AM: This appeal of the Assessee arises out of the order of the Learned Commissioner of Income Tax (Appeals), National Faceless

Appeal Centre (NFAC), Delhi, [hereinafter referred to as ‘Ld. CIT(A)’] in Appeal No.CIT(A), Delhi-9/10682/2019-20 against the order T.C. Healthcare Pvt. Ltd. vs. ACIT passed by ACIT, Circle-25(1), Delhi (hereinafter referred to as the ‘Ld. AO’) u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on 25/12/2019.

However, a demand of Rs.4,11,660/- was raised thereon. In the tax computation sheet forming part of the assessment order, the ld. AO had charged interest u/s 234C of the Act for Rs 5,65,652/-.

This was charged by considering the assessed tax before allowing MAT Credit u/s 115JAA of the Act. The assessee carried this issue before the ld. CIT(A) but could not succeed. Hence, it is in appeal before us.

T.C. Healthcare Pvt. Ltd. vs. ACIT 4. As per section 234C of the Act, interest is charged on the shortfall in payment of ‘tax due on the returned income’. The expression ‘tax due on the returned income’ is defined in Explanation to Section 234C of the Act wherein it has been clearly stated that – ‘tax due on the returned income’ means the tax chargeable on the total income declared in the return of income furnished by the assessee, as reduced by the amount of – (i) Tax deducted / collected at source; (ia) any relief of tax allowed u/s 89 ; (ii) any relief of tax allowed u/s 90 on account of tax paid outside India; (iii) any relief of tax allowed u/s 90A on account of tax paid in a specified territory outside India referred to in that section ; (iv) any deduction from the Indian income-tax payable, allowed under section 91, on account of tax paid in a country outside India; and (v) any tax credit allowed to be set off in accordance with the provisions of section 115JAA or section 115JD.