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2023 (4) TMI 1208 - ITAT AHMEDABADCharging interest u/s 234A, 234B and 234C - late filing of return of income - return of income u/s 139 was not filed for the relevant year under bonafide belief that since the assessee has not having any other income from business or profession the assessee does not require to file any return of income - HELD THAT:- It is pertinent to note that Section 234A is a mandatory provision as the wording used by the statute is when the assessee furnished return of income after the due date or is not furnished under sub-Section 1 or sub-Section 4 of Section 139 the assessee shall be liable to pay simple interest at the rate of 1% for every month or part of a month comprising in the period commencing on the date immediately following the due date. Section 234A(1) Explanation 3 categorically states that where in relation to an assessment year is made for the first time under Section 147 the assessment so made shall be regarded as a regular assessment for the purposes of this Section. Here in the Explanation the assessment for the first time under Section 147 is mandatory to be recorded as regular assessment under Section 139 itself. Hon’ble Bombay High Court in case of Priti Pithawala [2003 (3) TMI 743 - ITAT MUMBAI] has decided the issue and granted the relief to the assessee as appears that in that case the belated return which cannot be submitted after the expiry of one year than the assessment made for the first time u/s 147, the assessee cannot be made liable to pay interest for the period during which it was not possible on the part of the assessee to file return till issuance of notice u/s 148. CIT(A) was not right in levying interest under Section 234A of the Act when the return was filed under Section 148 itself and therefore, the interest should be charged from the date of notice under Section 148 of the Act itself and not from the date of return filed under Section 139 or it is due date under Section 139. Appeal of the assessee is partly allowed.
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