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TMI Blog2023 (4) TMI 1208X X X X Extracts X X X X X X X X Extracts X X X X ..... month or part of a month comprising in the period commencing on the date immediately following the due date. Section 234A(1) Explanation 3 categorically states that where in relation to an assessment year is made for the first time under Section 147 the assessment so made shall be regarded as a regular assessment for the purposes of this Section. Here in the Explanation the assessment for the first time under Section 147 is mandatory to be recorded as regular assessment under Section 139 itself. Hon ble Bombay High Court in case of Priti Pithawala [ 2003 (3) TMI 743 - ITAT MUMBAI ] has decided the issue and granted the relief to the assessee as appears that in that case the belated return which cannot be submitted after the expiry of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... late filing of return of income without providing an opportunity of hearing so that there is gross violation of principles of natural justice. There is no mention in the assessment order nor in any of the notices/show cause notice regarding charging of interest u/s 234A. 2.1 The Ld. CIT(A) has grievously erred in law and/or on facts in invoking provisions of S.234A of the Act. 2.2 The Ld. CIT(A) has grievously erred in law and/or on facts in invoking provisions of S.234 which has no applicability to the facts of this case in as much as that this provisions is workable only towards returns filed u/s 139(1) whereas the impugned returned was filed in response to 148. 3.1 Without prejudice to the above and in alternative, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said Assessment Year. In response the assessee filed here return for A.Y. 2015-16 on 01.05.2021 disclosing total income of Rs. 35,53,830/-. Subsequently, notices under Section 143(2) and 142(1) of the Act alongwith questionnaire were issued and served on the assessee at his registered e-mail address for upon which the assessee filed various documents and responses. The assessee revealed that during F.Y. 2014-15 the source of assessee s income was family pension and interest income as the assessee received family pension amounting to Rs. 7,91,828/- interest on FDs of Rs. 25,76,205/- and interest on Savings account of Rs. 2,10,801/-. The Assessing Officer observed that the assessee had taxable income during F.Y. 2014-15 and did not file her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn of income that the expiry due date under Section 139(1) to notice under Section 148 and not for the entire period. There is not mechanism under the law which permits assessee to file return of income so that it cannot be asked to pay interest for the period. 6. The Ld. D.R. submitted that the interest for defaults in furnishing return of income under Section 139 is a mandatory as per the provisions of Section 234A. The Ld. D.R. further submitted that the interest is leviable in all instances when return of income is filed within the due date. In the present case no return of income was filed by the assessee under Section 139(1) of the Act despite having taxable income. The provisions of sub-Section 3 of Section 234A are not applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Bombay High Court it appears that in that case the belated return which cannot be submitted after the expiry of one year than the assessment made for the first time under Section 147, the assessee cannot be made liable to pay interest for the period during which it was not possible on the part of the assessee to file return till issuance of notice under Section 148 of the Act. Thus, following the ratio laid down by the Hon ble Bombay High Court the CIT(A) should have taken cognizance of the same. Thus, the CIT(A) was not right in levying interest under Section 234A of the Act when the return was filed under Section 148 itself and therefore, the interest should be charged from the date of notice under Section 148 of the Act itself and not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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