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TMI Blog2017 (2) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... ct would be payable by the assessee, on the assessed tax of ₹ 1,57,58,192 /- reduced by the self-assessment tax of ₹ 95,00,000/- paid before the due date of filing of return, for the period from 01/10/2010 to 25/03/2011. Accordingly, the ground of the appeal is allowed partly. - ITA No. 527/Del/2014 - - - Dated:- 16-11-2016 - SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER For The Appellant : Sh. Rajesh Jain, CA For The Respondent : Sh. F.R. Meena, Sr.DR ORDER PER O.P. KANT, A.M.: This appeal by the assessee is directed against the order dated 11/11/2013 passed by the Ld. Commissioner of Income-tax (Appeals)- XVII, Laxmi Nagar , Delhi for assessment year 2010-11 raising following grounds: 1. That the learned CIT (A) erred in upholding the levy of interest u/s 234A and 234B of the Act without considering the amount of Income Tax paid on various dates during the period April 2010 to March 2011, totaling to ₹ 1,20,00,000/- as per details submitted during the course of hearing, without appreciating the spirit of various judgement of honourable Supreme Court and High Court, specially the case of Pranoy Roy 309 IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, however, on the issue of levy of interest under section 234B of the Act, the learned Commissioner of Income-tax (Appeals) directed the Assessing Officer to recalculate the interest as per law after considering the submission of the assessee. 2.1 Aggrieved with the above findings of learned Commissioner of Income-tax (Appeals), the assessee is in appeal before the Tribunal raising the grounds as reproduced above. 3. In respect of grounds No. 1 and 2 of the appeal, the learned Authorized Representative of the assessee submitted that due date of filing of the return of income in the case of the assessee was on 30/09/2010, whereas the assessee filed return on 25/03/2011. Out of the tax due of ₹ 1,57,76,732/- on the returned income of ₹ 4,64,15,805/-, the assessee paid ₹ 95,00,000/- before the due date of filing of return and the balance tax was paid in the month of January, and March 2011. The assessee computed interest of ₹ 3,25,094/- under section 234A of the Act, whereas the Assessing Officer levied interest of ₹ 9,45,492/- under section 234A of the Act at the rate of 1% per month on the total tax payable over assessed income, for the period fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest under section 234A of the Act. The dispute is in respect of the amount of tax on which interest was to be charged. The Assessing Officer has charged interest on the entire amount of assessed tax of ₹ 1,57,86,177/- for the period from the due date of filing of return to the date of filing of return. As against the above computation of interest under section 234A by the Assessing Officer, the assessee paid the taxes on the returned income and calculated the interest under section 234A amounting to ₹ 3,25,094/-as under: Month I. Tax Due I.. Tax Paic During Month Interest 234A Apr., 10 1,57,48,747 20,00,000 N.A. May, 10 1,37,48,747 20,00,000 N.A. Jun., 10 1,17,48,747 20,00,000 N.A. Jul., 10 97,48,747 35,00,000 N.A. Aug.,10 62,48,747 N.A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) any deduction, from the Indian income-tax payable, allowed under section 91, on account of tax paid in a country outside India; and (vi) any tax credit allowed to be set off in accordance with the provisions of section 115JAA or section 115JD. Explanation 1. - In this section, due date means the date specified in sub-section (1) of section 139 as applicable in the case of the assessee. Explanation 2. - In this sub-section, tax on the total income as determined under sub-section (1) of section 143 shall not include the additional income-tax, if any, payable under section 143. Explanation 3. - Where, in relation to an assessment year, an assessment is made for the first time under section 147 or section 153A, the assessment so made shall be regarded as a regular assessment for the purposes of this section. Explanation 4. - [* * *] (2) The interest payable under sub-section (1) shall be reduced by the interest, if any, paid under section 140A towards the interest chargeable under this section. 3.6 In the case in hand, there is no dispute for reducing the tax deducted at source from the assessed tax. The dispute is restricted to the self-as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f November, 2006, whereas the return of income was filed on 26th November, 2007. The Tribunal in para-10 of the order held as under: In the instance case, the returned income and assessed income are not same. There is a difference of ₹ 8,273/-. Since the assessee has paid tax on returned income on 2.11.2006, in our considered opinion, the interest u/s 234A will be chargeable form the due date of filing the return to November, 2006 on assessed income. Since the assessee had paid tax of ₹ 13,84,774/- in November, 2006, interest u/s 234A from December, 2006 to November, 2007 when the return of income was filed, will be payable on the assessed tax after reducing the amount of tax paid at ₹ 13,84,774/-.The AO is directed to compute the tax payable u/s 234A accordingly. 3.13 In the above case entire self-assessment tax has been paid after due date of filing of return of income and hence the assessee was directed to pay the interest under section 234A of the Act on assessed tax from the due date of filing of the date of self-assessment tax paid and for the period from date of self-assessment tax paid to the date of filing of return, on the assessed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act, 1961(hereinafter the Act) is charged in case of default in furnishing return of income by an assessee. The interest is charged at th specified rate on the amount of tax payable on the total income, as reduced by the amount of advance tax, TDS/TCS, any relief of tax allowed under section 90 and section 90A, any deduction allowed under section 91 and any tax credit allowed in accordance with the provisions of section 115JAA and section 115JD of the Act. Since self assessment tax is not mentioned as a component of tax to be reduced from the amount on which interest under section 234A of the Act is chargeable, interest is being charged on the amount of self-assessment tax paid by the assessee even before the due date of filing of return. 2. 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 the income-tax return for the relevant assessment year. Accordingly, the present practice of charging interest under section 234A of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under section 234A of the Act. 3.23 Since Hon ble Delhi High Court, being the jurisdictional High Court s, whose decision in the case of Dr. Pranoy Roy (supra) is binding on us, thus, respectfully following the above decision, we hold that interest under section 234A of the Act would be payable by the assessee, on the assessed tax of ₹ 1,57,58,192 /- reduced by the self-assessment tax of ₹ 95,00,000/- paid before the due date of filing of return, for the period from 01/10/2010 to 25/03/2011. Accordingly, the ground of the appeal is allowed partly. 4. In ground No. 2 the assessee has raised the issue as the learned Commissioner of Income Tax (Appeals) has not given the categorical direction that interest under section 234B of the Act should be calculated after giving due credit of taxes paid by the assessee on various dates during the period April, 2010 to March, 2011, amounting to ₹ 1,20,00,000/-. 4.1 The learned Authorized Representative of the assessee reiterating the grounds submitted that the learned Commissioner of Income-tax (Appeals) should be allowed to issue a specific direction in this regard. 4.2 On the other hand, the learned Senior Depar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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