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2013 (10) TMI 1025 - HC - Income TaxChargeability of interest for late filing of return under section 234A - tax was paid before the due date - enhancement of tax during assessment proceedings – Held that:- Reliance has been placed on the judgment in the case of Dr. Prannoy Roy [2001 (12) TMI 68 - DELHI High Court] - There is a minor difference between the case of Dr. Prannoy Roy and the case of the present assessee on hand - In the case of Dr. Prannoy Roy, the assessee had paid up the entire tax before the due date. In the present case, the assessee deposited a sum of Rs. 10 lakhs under section 140A of the Act. In addition thereto, the assessee had also suffered tax deduction at source to the tune of Rs. 25,533. Eventually, the Assessing Officer assessed the tax liability of the assessee at a total of Rs. 15,08,474. Thus, the assessee had short-paid tax to the tune of Rs. 4,82,941. However, ratio of the decision of the Delhi High Court in the case of Dr. Prannoy Roy, such distinction would not be material - What was held by the Delhi High Court was that charging of interest from an assessee for late filing of return though the tax was already paid, would render the provision penal in nature, which the statute did not provide – In the present case, only modification, needed to adopt is that the assessee must be held to be liable to pay interest under section 234A of the Act on the difference of amount between the tax assessed and the amount which he had paid before the due date to which even the assessee has not raised any serious objection - Payment of interest on the entire amount of Rs. 14,82,941 is set aside – Revenue entitled to collect such interest under section 234A of the Act on a sum of Rs. 4,82,941 for the entire period, i.e., September 1, 1996, (after due date of filing of return) till March 27, 1998, (date on which the return was filed) – Decided in favor of Assessee.
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