Kiran Baburao Jadhav Vs DCIT (ITAT Pune)
Interest u/s 234B on Updated Return to be calculated only till Filing Date, Rules ITAT Pune
Assessee, an individual deriving income from salary, house property, capital gains & other sources, filed his original return of income on 31.10.2023 declaring total income of ₹4,14,23,740/-. Subsequently, on 31.01.2024, he filed an updated return u/s 139(8A) declaring additional income of ₹97,06,000/- & paid tax of ₹33,66,040/- on the same. While processing the updated return, the CPC, vide Intimation dt 11.12.2024, determined interest liability u/s 234B at ₹2,56,520 & levied additional tax u/s 140B of ₹64,130, totalling ₹3,20,650/-.
Assessee’s grievance was that interest u/s 234B had been wrongly calculated up to the date of intimation (December 2024) instead of up to the month of filing the updated return (January 2024), despite the tax being paid before filing such return.
Before CIT(A), Assessee argued that, in terms of section 140B & CBDT’s own interpretation, credit for tax payment made while filing the updated return should be considered while computing interest u/s 234B. However, the CIT(A) held that as per sections 140B(2) & 139(8A)(4), Explanation 1 to section 234B is not applicable for updated returns & only payments claimed in the original return u/s 140A can be reduced for determining “assessed tax” for this purpose. He, therefore, upheld the CPC’s computation.
