Abha Bansal Vs ACIT (ITAT Delhi)
ITAT Delhi held that CPC wrongly processed return by considering due date as 5th August instead of 31st October. Accordingly, interest charged under section 234A of the Income Tax Act deleted and interest charged under section 234B altered.
Facts- Assessee filed rectification application u/s. 154 of the Income Tax Act. Assessee stated that it is a partner in firm which is liable to tax audit u/s. 44AB. Accordingly, assessee is required to file return on or before 31.12.2013. However, the return processed by CPC u/s 143 (1) dated 28.04.2014 holding that the due date for filing the return falls on 05.08.2013 and wrongly charged interest u/s 234A, 234B and 234C.
The said rectification application was rejected. CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that this is very clear from Explanation to section 139 of the Act, which defines the expression “due date”. Hence, the department in the hands of the firm i.e. M3M holding had accepted the fact that it is liable for tax audit and accordingly had accepted the due date of filing of return of income u/s 139(1) of the Act to be 31.10.2013. Hence, the department cannot take the divergent stand for the assessee herein by holding that the firm in which assessee is a partner is not liable for tax audit u/s 44AB of the Act and consequently, the due date for assessee would get advanced to 05.08.2013, instead of 31.10.2013. In view of this, we have no hesitation to direct the ld AO to delete the chargeability of interest u/s 234A of the Act in the sum of Rs.22,35,232/- in the instant case. The chargeability of interest u/s 234B of the Act is consequential in nature.
