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TMI Blog2024 (11) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... e contention that the assessee had opportunity to remit the self-assessment tax before 31st October 2021 but did not do so and CBDT Circulars do not grant the benefit of extension to interest u/s 234A. We find considerable cogency in the contention of the Ld. AR that the decision of Dr. Prannoy Roy [ 2001 (12) TMI 68 - DELHI HIGH COURT] which was upheld by Hon ble Supreme Court in the case of CIT vs Prannoy Roy [ 2008 (9) TMI 150 - SUPREME COURT] , fully supports the case of the assessee, wherein, it has been held that the interest u/s 234A is compensatory and not penal in nature and interest is payable where tax has not been deposited prior to due date of filing the Income tax return. Thus, irrespective of date of filing of ITR, interest u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f provided by CBDT circular. 5. The Ld. CIT(A) as well as AO, CPC has erred in facts and law in interpreting the circulars as well as judicial rulings. 6. The Ld. CIT(A) as well as AO has erred in not following the judgement passed by Hon'ble Supreme Court in the case of CIT vs. Pranoy Roy wherein Hon'ble Supreme Court upheld that interest u/s. 234A of the Act is compensatory in nature rather than penal and interest u/s. 234is not leviable if tax is deposited before the due date of filing income tax return. 2. The brief facts of the case are that the assessee is a Limited Liability Parternship (LLP) providing the consultancy services in the field of business, management, engineering, and other technical areas across the country. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich self assessment tax including the interest u/s. 234A upto the date is already paid and also wrongly calculating the interest u/s. 234A till the date of filing of income tax return ignoring the fact that interest should be calculated only till the date of deposition of tax in light of relief provided by CBDT circular. It was submitted that the lower authorities have erred in not following the judgement passed by Hon'ble Supreme Court in the case of CIT vs. Pranoy Roy wherein Hon'ble Supreme Court upheld that interest u/s. 234A of the Act is compensatory in nature rather than penal and interest u/s. 234 is not leviable if tax is deposited before the due date of filing income tax return. To buttress his arguments, Ld. AR has filed the fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held by Hon'ble Supreme Court in the case of CIT vs Prannoy Roy [2009] 179 Taxman 53 (SC). In the aforementioned decisions it has been held that the interest u/s 234A is compensatory and not penal in nature and interest is payable where tax has not been deposited prior to due date of filing the ITR. • Further, we wish to place reliance upon the decision of Hon'ble Pune IT AT in the case of Milind Madhav Padhye vv. DCIT [2023] 148 taxmann.com 151 (Pune - Trib.). In this, following the aforementioned decision of Hon'ble Supreme Court, Hon'ble ITAT held that irrespective of date of filing of ITR, interest u/s 234A of the Act, shall accrue on the balance of taxes outstanding from the first date immediately following the due date and shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of CIT vs Prannoy Roy [2009] 179 Taxman 53 (SC), fully supports the case of the assessee, wherein, it has been held that the interest u/s 234A is compensatory and not penal in nature and interest is payable where tax has not been deposited prior to due date of filing the Income tax return. We further find force in the arguments of the Ld. AR that ITAT, Pune in the case of Milind Madhav Padhye vv. DCIT [2023] 148 taxmann.com 151 (Pune - Trib.), by following the aforementioned decision of Hon'ble Supreme Court, also applicable in the case of the assessee wherein, it has been held that irrespective of date of filing of ITR, interest u/s 234A of the Act, shall accrue on the balance of taxes outstanding from the first date immediately follow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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