Trisigma Apex Services LLP Vs DCIT (ITAT Delhi)
ITAT Delhi held that interest under section 234A of the Income Tax Act is leviable from the first date immediately following the due date till the date of full discharge of entire tax liability. Interest u/s. 234A has no relevance of date of filing of ITR.
Facts- Issue involved in the present appeal is with regard to levy of interest under section 234A of the Income Tax Act. Assessee deposited interest u/s. 234A for one month i.e. (from the original due date, i.e. 31st October, 2021 till the deposition of taxes i.e. 29.11.2021). However, the AO, CPC computed interest till the date of filing return i.e. 7.3.2022 and imposed the interest of Rs. 7,18,983/- u/s. 234A beyond the date on which self assessment tax including the interest u/s.234A upto the date is already paid. CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Hon’ble Delhi High Court in the case of Dr. Prannoy Roy Vs CIT [2002] 121 Taxman 314 (Delhi) which was upheld by Hon’ble Supreme Court in the case of CIT vs Prannoy Roy [2009] 179 Taxman 53 (SC), fully supports the case of the assessee, wherein, it has been held that the interest u/s 234A is compensatory and not penal in nature and interest is payable where tax has not been deposited prior to due date of filing the Income tax return.
