Case Law Details
Indu Rohitkumar Pathak Vs ITO (ITAT Ahmedabad)
It is pertinent to note that Section 234A is a mandatory provision as the wording used by the statute is when the assessee furnished return of income after the due date or is not furnished under sub-Section 1 or sub-Section 4 of Section 139 the assessee shall be liable to pay simple interest at the rate of 1% for every 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.
The Ld. A.R. relied upon the decision of Hon’ble Jodhpur Bench in case of ITO vs. Amar Chand Boarad (2013) 33 taxmann.com 683 the Tribunal has observed that the Hon’ble Bombay High Court in case of Priti Pithawala vs. ITO (2003) 129 taxmann 79 (Mumbai) has decided the issue and granted the relief to the assessee therein to after going through the decision of Hon’ble 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 from the date of return filed under Section 139 or it is due date under Section 139.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The appeal filed by the assessee is against the order passed by the Ld. CIT(Appeals), National Faceless Appeal Centre (in short “NFAC”), Delhi on 31.10.2022 for A.Y. 2015-16.
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