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TMI Blog2018 (6) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... nity to the assessee to substantiate its claim before the CIT(A) and remit the matter back to the file of CIT(A) Charging of interest u/s.234B - Held that:- Interest u/s.234B can be levied only on the returned income and not on the assessed income. See Ajay Prakash Verma case [2013 (1) TMI 140 - JHARKHAND HIGH COURT]. - ITA No.112 to 115/Ran/2017 - - - Dated:- 30-5-2018 - SHRI N. S. SAINI, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER For The Assessee : Shri S.K.Poddar Devesh Poddar, Adv. For The Revenue : Shri P.K.Mondal , JCIT ORDER Per Pavan Kumar Gadale, JM: These are the appeals filed by the assessee against the order of CIT(A), Jamshedpur, all dated 17.04.2017 for the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad deployed capital for undisclosed turnover which was estimated on the basis of deposits in bank account. The estimate of capital was made @7.34% of the undisclosed turnover of ₹ 25,28,770/-. Ld. CIT(A) was not justified in making enhancement by adopting a completely new head of income. Further, there is no basis or reason to suggest that the appellant had deployed any additional capital for the business or turnover which was estimated on the basis of bank deposits. 4. For that interest u/s 234A and 234B should have been charged on the returned income and not on the assessed income following the decision of Hon'ble Jharkhand High Court. 5. For that other grounds in detail will be argued at the time of hearing. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidering the submissions of assessee and the findings of AO, dismissed the appeal of the assessee. 5. Aggrieved by the order of CIT(A), the assessee has filed an appeal before the Tribunal. 6. Ld. AR before us submitted that the assessee is a wholesaler in electronic and solar energy articles and disclosed a net profit of 1.4% and the books of accounts are fully verifiable, audited profit and loss account was filed. Ld. AR further submitted that the assessee maintained a bank account in which certain deposits were made which were considered as additional turnover of the assessee. The AO estimated the profit @2.5% on the total turnover however the CIT(A) enhanced the estimate of profit to 5.88% on the ground that the assessee must have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng adequate opportunity of hearing to the assessee. The assessee is directed to submit the information and substantiate its claim with proper evidence, so as to enable the CIT(A) to pass a speaking order. Accordingly, ground Nos.1 to 3 of appeal of the assessee are allowed for statistical purposes. 9. Ground No.4 is with regard to charging of interest u/s.234A 234B of the Act, at the outset, the ld.AR submitted that this issue is covered in favour of the assessee on the decision of jurisdictional High Court in case of Ajay Prakash Verma in ITA No.38 of 2010 reported in 2013(1) TMI 140, wherein the hon ble High Court has held that interest u/s.234B can be levied only on the returned income and not on the assessed income. Ld.AR also relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessed income of the assessee under Sections 234A and 234B is concerned, in view of the Full Bench judgment of Ranchi Bench of Patna High Court delivered in the case of Smt. Tej. Kumari, the revenue can levy the interest only on the total income declared in the returns and not on the income assessed and determined by the AO to that extent. The orders passed by the authorities below are accordingly modified and interest shall be chargeable in the light of the Full Bench judgment, referred above. 11. We also find that coordinate bench of the Tribunal in the case of Shri Girdhari Lal Sharma vs. ITO, Ward-1(4), Jamshedpur in ITA No. 31/Ran/2013, order dated 07.05.2012 in para No. 6, relying upon the above decision of the Hon'ble Jhar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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