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TMI Blog2016 (2) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.2015 and 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. This circular was not available at the time of the Tribunal deciding the matter. Accordingly, we are of the view that the Tribunal had no occasion to examine the case of the Assessee in the light of the Circular No.2/2015 dated 10.2.2015 and its applicability thereof to the present case. Hence, it would be appropriate for us to remand the matter to the Tribunal to examine the issue of payment of interest under Section 234A of the Act on the amount of self assessment tax paid by the Assessee before the due date of filing of return of income i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n discharged before the due date of filing the return in order to justify the appropriation of tax before levy of interest under Section 234A of the Act? [c] Whether the interpretation as made by the Tribunal was justified in light of the Supreme Court judgment which refers to the payment of tax till the due date of filing the return especially when interest levy under Section 234A of the Act was only compensatory and when the interpretation of the Appellant was also supported by the Board Circular No.2/2015 dated 10.02.2015? 2. The facts in brief are: That the appellant/assessee is an individual carrying on business of transport, travel and tourism as Proprietor under the name of Sharma Transports. It transpires that the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 234B of the Act have been wrongly worked out. The Assessing Officer rejected the said application and directed the appellant to pay balance outstanding demand. Aggrieved by the same, the appellant preferred an appeal before the Commissioner of Income Tax [Appeals]. The Appellate Commissioner confirmed the calculation of interest made by the Assessing Officer and dismissed the appeal. Aggrieved by the Order of the Appellate Commissioner, the appellant preferred an appeal before the Income Tax Appellate Tribunal, Bangalore. The Tribunal declined to accept the explanation made by the Assessee in computing interest under Section 234A of the Act and dismissed the appeal. Being aggrieved by the same, the appellant is before this court. 3. Hear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther reported in [2009] 309 ITR 0231 and also the Judgment of the Delhi High Court in the case of Dr. Prannoy Roy Another Vs. Commissioner of Income Tax and Another reported in [2002] 254 ITR 0755. He would also place reliance on the Circular Instructions issued by the Under Secretary to Government of India in Circular No.2/2015 dated 10.2.2015 whereby 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 the return of income. 6. On the other hand, Sri. K.V. Aravind, learned Counsel for the Revenue would strongly rely upon the provisions of Section 234A of the Act, to contend that no self assessment tax would be re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an amount of ₹ 10 lakhs was paid on 3.11.2009 subsequent to the date of filing of the return and the balance outstanding demand was ₹ 9,60,000/-. The Assessing Officer has levied interest on the entire amount of tax under Section 234A of the Act as no discretionary power is vested with the Assessing Officer to waive off the interest on the self assessment tax paid prior to the filing of the return of income. This is confirmed by the Appellate Commissioner as well as by the Income Tax Appellate Tribunal. 10. Section 234A of the Act contemplates interest for defaults in furnishing return of income. A reading of this provision makes it clear that the return of income for any assessment year under subsection [1] or sub-section [4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have also noticed that payment of interest is to compensate losses to the Revenue. In the absence of any statutory provision made for reducing such amount paid towards self assessment tax, the Authorities proceeded to levy interest on the entire amount de hors the payment of ₹ 40 lakhs made by the Assessee towards the self assessment tax before the due date of filing of return of income. A similar question was considered by the Apex Court in the case of Pranoy Roy [supra]. This Judgment of the Apex Court was considered by the Central Board of Direct Taxes in Circular No.2/2015 dated 10.2.2015 and 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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