Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 1026 - HC - Income TaxAddition u/s. 69 - unexplained investment - correct assessment year - HELD THAT:- A.O. should have added the Long-Term Capital Gain being the income of the Assessee and not the entire sale receipts, which included investment made by the Assessee in purchase of shares, as the investment was duly shown in balance sheet of the Assessee in previous year and was made out of past earning & savings. On perusal of the same, it reveals that amount have been shown in the balance sheet in the name of Kailash Auto on purchase of 20000 and 10000 shares respectively for the assessment year 2014-2015, which is the investments of previous year and cannot be taxed in the subsequent year. Therefore, in our opinion, the A.O. could have added only income earned during Assessment Year 2015-16 and cannot tax the investment made in purchase of shares being income of past years, as there were no findings given by the A.O. that the purchase transactions were bogus transactions. Thus, Tribunal has rightly directed the A.O. to delete partially out of the total addition made u/s. 69 on account unexplained investment. We have no hesitation in holding that question decided against the revenue and in favour of the Assessee. Interest u/s 234B - to be charged on the returned income OR assessed income? - HELD THAT:- Recently the Hon’ble Apex Court in its judgment passed in the case of Shree Choudhary Transport Co. [2020 (8) TMI 23 - SUPREME COURT] has held that in Income Tax matters the law to be applied is that which is enforce in the assessment year in question unless stated otherwise by express intendment or by necessary implication. Bare perusal of Section 234B of the Act it is crystal clear that the interest has to be charged on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax. The term “assessed tax” has been defined in Explanation-1 of Section 234B (1). As per said Explanation-1 “assessed tax” means the tax on the total income determined under sub-Section (1) of Section 143 and where a regular assessment is made, the tax on the total income determined under such regular assessment as reduced by the amount provided in Explanation-I to section 234B. Therefore, the interest under Section 234B has to be charged on the assessed income and not on the returned income of an Assessee. In the present case, the Ld. ITAT in its impugned judgment, relying on judgment of this Court passed in the case of Ajay Prakash Verma (2013 (1) TMI 140 - JHARKHAND HIGH COURT) has, erroneously held that the interest under Section 234B could be charged on the returned income and not on the assessed income. The Ld. ITAT has not even considered the provisions of Section 234B, as applicable during the period of AY 2015- 16, which is relevant to the instant appeal. The said finding of the Ld. ITAT is totally contrary to the provisions of Section 234A and 234B as amended by the Finance Act, 2001 and the Finance Act, 2006. Decided in favour of the revenue.
|