Case Law Details
Dhirendra Narbheram Sheth Vs ITO (ITAT Rajkot)
ITAT Rajkot held that interest under section 234A and 234B can be levied only up to the date of self-assessment tax paid and not for period beyond that date.
Facts- The only issue raised by the assessee is that the learned CIT-A erred in confirming the order of the AO by levying the interest under section 234A and 234B of the Act up to the date of the assessment order.
The assessee claimed that he has already paid self-assessment tax with interest under section 234A and 234B of the Act on 19/03/2015. So, no interest should be charged under the aforementioned sections for the period attributable after the payment of self-assessment tax dated 19 March 2015.
Conclusion- When the amount of tax has been paid by the assessee with interest up-to the date of payment, there is no point to charge the interest till the date of filing of return of income as the revenue is not incurring any loss on account of non-filing of ITR. The issue, however, is no longer res-integra. The Hon’ble Supreme Court and Various Hon’ble High Court thorough judgements have well settled that when the statute says interest, which would be compensatory in nature, would be levied upon happening of a particular event or action.
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