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).
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