Maharishi Education Corporation Pvt Ltd Vs ITO (Delhi High Court)
The Delhi High Court considered the Assessing Officer’s comments dated 05.12.2025 concerning the tax and interest arising from the petitioner’s long-term capital gain. The AO stated that tax on Rs.14,98,151/- was calculated at 20%, amounting to Rs.3,42,777/- including surcharge and health and education cess, and not at 22% as had been understood in the earlier proceedings. The AO also stated that the demand of Rs.59,970/- arose from a difference in interest under Section 234B between the amount claimed by the assessee and the amount determined by CPC in the intimation under Section 143(1).
The High Court observed that the CIT(A) and the Tribunal had proceeded on incorrect facts supplied by the Department and had held that tax was rightly calculated at 22% under Section 115BAA. The Court therefore set aside the declaration of law made on that basis while keeping the question of law open. Regarding Section 234B interest, the Court directed the AO to provide the assessee with a copy of the interest calculation by registered e-mail within 15 days, while reserving the assessee’s right to avail appropriate legal remedies. The appeal and pending applications were disposed of accordingly.
AO Confirmed Tax Was Calculated at 20%
The respondents placed on record the comments furnished by the Assessing Officer dated 05.12.2025. According to the AO, verification showed that the demand of Rs.59,970/- in the intimation under Section 143(1) dated 30.12.2023 was due to a difference in interest under Section 234B claimed by the assessee in its income-tax return and the interest determined by CPC in the intimation.
