Case Law Details
Iljin Automotive Pvt Ltd Vs DCIT (ITAT Chennai)
The case of Iljin Automotive Pvt Ltd vs Deputy Commissioner of Income Tax (DCIT) offers a close look at the consequential and mandatory nature of interest charged under sections 234A to 234D. ITAT Chennai presided over this case, providing a key interpretation of these tax provisions.
The issue at hand involved the charging of interest under sections 234A to 234D, which the assessee contested. Despite the return of income being accepted under section 143(3) read with section 144B, the amount of total income was wrongly calculated in the computation sheet, leading to further appeals.
The CIT(A) directed the Assessing Officer (AO) to recompute the tax liability in line with the assessment order passed under section 143(3), and to apply the relevant interest as per law. Dissatisfied, the assessee brought the case to ITAT Chennai.
The tribunal maintained that the assessee’s concern was sufficiently addressed in the preceding order. However, they emphasized that interest under sections 234A to 234D is consequential and mandatory in nature, instructing the AO to re-compute the interest according to the law, considering the income assessed under section 143(3).
The ITAT Chennai’s decision in the Iljin Automotive Pvt Ltd vs DCIT case reinforces the consequential and mandatory nature of interest charged under sections 234A to 234D.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
1. At the time of hearing, none appeared for assessee. However, Ld. Sr. DR submitted that the returned income has been accepted and the assessee is merely assailing charging of interest u/s 234A to 234D which is consequential in nature.
2. We find that though the return of income was accepted u/s 143(3) r.w.s. 144B vide order dated 13-09-2021, the amount of total income was wrongly picked up in the computation sheet. Upon further appeal, Ld. CIT(A) directed Ld. AO to recompute the tax liability as per assessment order passed u/s 143(3). The Ld. AO was also directed to charge applicable interest as per law. Still aggrieved, the assessee is in further appeal before us.
3. We find that the assessee’s grievance has adequately been addressed in the impugned order. However, we reiterate that interest u/s 234A to 234D is consequential and mandatory in nature and Ld. AO is directed to re-compute the same in accordance with law considering the income assessed u/s 143(3).
4. The appeal stand allowed in terms of our above order.
Order pronounced on 01st June, 2023
