Apollo Pharmacies Limited Vs DCIT (ITAT Chennai)
In a significant development, Apollo Pharmacies Limited took its case against the Deputy Commissioner of Income Tax (DCIT) to the Income Tax Appellate Tribunal (ITAT) in Chennai. The ITAT issued a directive to the Commissioner of Income Tax (Appeals) [CIT(A)] to revisit the issue of interest under Sections 234A, 234B, and 234C after considering the outcome of the petitioner’s appeal under Section 119(20)(b)/119(2)(c) of the Income Tax Act before the Chairman, CBDT.
Background of the Case:
- The appeals, filed by Apollo Pharmacies Limited, contested the order of the CIT(A) dated 10.07.2023 for the assessment year 2020-21.
- The company initially declared a total income of Rs. 1,04,20,68,830/-, and a demand notice of Rs. 5,78,43,140/- was issued for interest payable under Sections 234A, 234B, and 234C.
Subsequent Developments:
- Following the processing of the return under Section 143(1) by the CPC, the case underwent scrutiny, resulting in an assessment under Section 143(3) on 27.09.2022.
- The demand notice raised the total interest to Rs. 6,25,75,750/-, leading the assessee to appeal the order before the CIT(A).
Petition for Waiver of Interest:
- During the appellate proceedings, Apollo Pharmacies submitted a petition under Section 119(20)(b)/119(2)(c) of the Act to the Chairman, CBDT, seeking a waiver of interest.
- The petitioner requested the CIT(A) to withhold the appeal proceedings until the CBDT Chairman decided on the waiver application.
CIT(A) Decision and ITAT Directive:
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