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2018 (5) TMI 1007 - AT - Income TaxCharging of interest u/s. 234B - Held that - AO had not followed the order of the Tribunal, that he was specifically directed to consider the ad hoc payment, that he should not have adjusted the payments in question (Rs. 26 crores and ₹ 1. 99 crores) against the payments of interest u/s. 234B of the Act. Ground no. 1 is decided in favour of the assessee. Denial of interest u/s 244 for the period from 03/10/20 to 29/11/2009, that there was delay on part of the assessee - Held that - The letter of the AO(dtd. 23. 09. 2009)was received by the assessee on 30. 10. 2009 and the AO had not refuted said fact. As per the letter it was supposed to file the details by 06. 11. 2009 and it filed the requisite details on the last day of the month. In our opinion, delay for the period of 03. 10. 2009 to 30. 10. 2009 was not at all attributable to it. We find that in alternate ground the assessee has admitted that maximum delay attributable to it was of 23 days only and not of the entire period. Therefore, reversing the order of the FAA, we partly allow the ground raised by the assessee. We hold that except for the delay of 23 days there was no delay on part of the assessee.
Issues:
1. Charging of interest u/s. 234B of the Act. 2. Allowance of interest to the assessee u/s. 244 of the Act. Issue 1: Charging of interest u/s. 234B of the Act The appeal challenged the order of the Assessing Officer and CIT(A) regarding the charging of interest u/s. 234B of the Act. The Tribunal had previously dealt with a similar issue in the case of Paston Transformer Ltd. vs. DCIT, where it was clarified that the adjustment towards interest payable under section 234B(2) is to be considered only at the time of filing the return of income. The Tribunal directed the Assessing Officer to calculate interest u/s. 234B in accordance with the provisions. The AO treated certain payments as Self Assessment Tax (SAT) u/s. 140A and calculated interest chargeable u/s. 234B. The FAA upheld the AO's decision, stating that every tax payment under the Act was made under specific sections. The AR argued that the payments should be considered towards tax and not interest, referencing relevant case law. The Tribunal found that the AO did not follow its directions to consider ad hoc payments while calculating interest u/s. 234B, leading to a decision in favor of the assessee. Issue 2: Allowance of interest to the assessee u/s. 244 of the Act The second ground of appeal concerned the allowance of interest to the assessee u/s. 244 of the Act. The AR contended that the AO and FAA denied interest for a specific period, claiming there was no delay on the part of the assessee or a minimal delay of 23 days at most. The AO's letter dated 23.09.2009 requested necessary details, and the assessee submitted them on 30.11.2009. The AO and FAA held that no interest was allowable for a particular period due to delay attributed to the assessee. The Tribunal noted that the delay from 03.10.2009 to 30.10.2009 was not the fault of the assessee, as it filed the details on the last day of the month as per the AO's letter. The Tribunal partially allowed the ground raised by the assessee, stating that except for a 23-day delay, there was no delay on the part of the assessee, resulting in the partial allowance of the appeal. In conclusion, the Tribunal's judgment addressed the issues of charging interest u/s. 234B of the Act and the allowance of interest to the assessee u/s. 244 of the Act, providing detailed analysis and clarification based on legal provisions and precedents cited during the proceedings.
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