2011 (2) TMI 1603 - AT - Income Tax

Summary

Issues Involved: The judgment involves the deletion of interest u/s 234B and 234D levied by the Assessing Officer.

Issue of Interest u/s 234B:
The Assessing Officer levied interest u/s 234B on the assessee, who contended that as the income was subject to Tax Deduction at Source (TDS) u/s 195, interest u/s 234B should not be applicable. The Ld. Commissioner of Income Tax (Appeals) considered the arguments and referred to relevant legal provisions and case laws. The Ld. Commissioner held that interest u/s 234B is not leviable when tax liability has been discharged by way of TDS, as per decisions of the Hon'ble Jurisdictional High Court of Uttarakhand and other relevant cases. The Tribunal upheld the Ld. Commissioner's decision, dismissing the Revenue's appeal.

Issue of Interest u/s 234D:
The Assessing Officer charged interest u/s 234D on the assessee, who argued that only the refund granted on account of excess TDS, advance tax, and self-assessment tax over the tax liability should be considered for the purpose of charging interest u/s 234D. The Ld. Commissioner of Income Tax (Appeals) agreed with the assessee's contention, citing relevant legal provisions and case laws. The Tribunal found the assessee's argument to be valid and upheld the Ld. Commissioner's decision to charge interest u/s 234D based on the correct amount of TDS, excluding interest granted u/s 244A. The Revenue's appeal was dismissed, and the Tribunal upheld the Ld. Commissioner's order.