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2017 (2) TMI 500 - AT - Income TaxInterest for defaults in furnishing return of income - whether the taxes paid under section 140A by the assessee are to be reduced from the assessed tax for the purpose of computing interest under section 234A? - Held that:- As in the judgment of the Hon’ble Delhi High Court in the case of Dr. Prannoy Roy (2001 (12) TMI 68 - DELHI High Court) it is clearly held that interest would be payable in a case where tax has not been deposited prior to the due date of filing of the income tax return. Further, Hon’ble Supreme Court also in the case of Dr. Prannoy Roy (2008 (9) TMI 150 - SUPREME COURT ) clearly held that when the tax due had already been paid, which was not less than the tax payable on the returned income which was accepted, the question of levy of interest does not arise. Thus, both the Hon’ble Delhi High Court and Hon’ble Supreme Court has held that credit of only self-assessment tax paid before the due date of filing of return has to be allowed while computing interest under section 234A of the Act. Interest under section 234A of the Act would be payable by the assessee, on the assessed tax of ₹ 1,57,58,192 /- reduced by the self-assessment tax of ₹ 95,00,000/- paid before the due date of filing of return, for the period from 01/10/2010 to 25/03/2011. Accordingly, the ground of the appeal is allowed partly.
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