In the case of Association Of Tax Practitioners & Hindu Economic Forum Vs. UOI filed with Kerala High Court it was argued that once an assessee is allowed to submit returns upto 15.10.2018, the department cannot demand interest under section 234A for the extended period. Hon’ble high court posted these writ petitions for further consideration on 11.10.2018.
FULL TEXT OF THE HIGH COURT JUDGMENT /INTERIM ORDER IS AS FOLLOWS:
Petitioners seek an interim prayer to submit returns without insistence of payment of interest for the period of delayed filing of returns in tune with the explanation to Section 234 A of the Income Tax Act, 1961. It is pointed out that once an assessee is allowed to submit returns upto 15.10.2018, the department cannot demand interest for the extended period.
2. The matter requires further consideration and it can be decided only after the final hearing. In such circumstances, I am of the view that the assessee may pay the interest without prejudice to the contentions raised with regard to the illegality of such levy of interest. In case the petitioner is found not liable to make such interest the department shall refund such interest. These writ petitions are posted for further consideration on 11.10.2018.