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TMI Blog2024 (11) TMI 767X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act, the due date for the partnership firm not liable for tax audit would be 05.08.2013 for the year under consideration end the due date for partnership which is eligible for tax audit would be 31.10.2013. This is very clear from Explanation to section 139 of the Act, which defines the expression due date . Hence, the department in the hands of the firm holding had accepted the fact that it is liable for tax audit and accordingly had accepted the due date of filing of return of income u/s 139(1) to be 31.10.2013. Hence, the department cannot take the divergent stand for the assessee herein by holding that the firm in which assessee is a partner is not liable for tax audit u/s 44AB of the Act and consequently, the due date for assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 44AB of the Act and assessee being a working partner of the abovesaid firm was liable to furnish his return of income on or before 31.12.2013. However, the return processed by CPC u/s 143 (1) dated 28.04.2014 holding that the due date for filing the return falls on 05.08.2013 and wrongly charged interest u/s 234A, 234B and 234C. The case of the assessee was selected for scrutiny and notice u/s 143(2) was issued to the assessee. The rectification rights were then transferred from CPC Bangalore to the Assessing Officer. After considering the facts on record, the Assessing Officer has not made any adverse inference while completing the assessment u/s 143(3) of the Act. Even though assessee has filed rectification application for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the assessment order so passed in the case of assessee u/s 143(3) of the Act. 2.3 That the ld. CIT (Appeals) has erred in law in adjudicating the case ex-parte without appreciating the fact that no disposal of rectification application u/s 154 dated 22.04.2016 was done by the office of Ld. A.O. 2.4 That the Ld. CIT(Appeals) has erred in law in adjudicating the case ex-parte without appreciating the fact that the bank account of the assessee was wrongfully attached by the Department for the recovery of impugned demand for which no adverse inference was drawn firstly, in the assessment order u/s 143(3) and secondly, no disposal was given for the rectification application dated 22.04.2016 u/s 154. 3 That the CIT (Appeals) erred in law and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd relief may be granted to the assessee. 6. At the time of hearing, ld. AR for the assessee submitted that similar issue was considered by the coordinate Bench in the case of Pankaj Bansal vs. ACIT vide ITA No.858/Del/2023 dated 10.04.2024, brought to our notice relevant findings of the Bench. 7. On the other hand, ld. DR for the Revenue relied on the findings of the lower authorities. 8. Considered the rival submissions and material placed on record. We observed that similar issue was already considered by the coordinate Bench in the case of Pankaj Bansal (supra) and the relevant findings of the Bench are as under :- 4. This return was processed by the ld CPC u/s 143(1) of the Act on 28.04.2014 accepting the return of income but interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planation to section 139 of the Act, which defines the expression due date . Hence, the department in the hands of the firm i.e. M3M holding had accepted the fact that it is liable for tax audit and accordingly had accepted the due date of filing of return of income u/s 139(1) of the Act to be 31.10.2013. Hence, the department cannot take the divergent stand for the assessee herein by holding that the firm in which assessee is a partner is not liable for tax audit u/s 44AB of the Act and consequently, the due date for assessee would get advanced to 05.08.2013, instead of 31.10.2013. In view of this, we have no hesitation to direct the ld AO to delete the chargeability of interest u/s 234A of the Act in the sum of Rs. 22,35,232/- in the inst ..... X X X X Extracts X X X X X X X X Extracts X X X X
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