2017 (3) TMI 1577 - AT - Income Tax

Charging of interest u/s 234A 234B and 234C as calculated after taking in account of TDS deductible at source - Held that - Respectfully following the decision of the Co-ordinate Bench of the Tribunal in assessee s own case we restore the issue to the file of the AO with a direction to recompute the interest u/s 234A 234B and 234C after taking into account the tax deductible on total income of the assessee by affording fair and reasonable opportunity of being heard to the assessee.

Summary

Issues:
Charging of interest under sections 234A, 234B, and 234C without considering tax deductible at source.

Analysis:
The appeal was filed against the order passed by the ld.CIT(A) for the assessment years 2009-10, where the issue raised was the charging of interest under sections 234A, 234B, and 234C without taking into account the tax deductible at source. The ld. AR contended that a similar issue had been decided in favor of the assessee by the Tribunal in a previous case. The ld.DR did not object to this contention.

Upon perusal of the record and relevant case law, the Tribunal found that the issue had been previously decided in favor of the assessee by a Co-ordinate Bench. The Tribunal referred to the specific paras from the previous judgment where it was held that interest should be charged after considering the amount of tax deductible at source on the income assessed. The Tribunal, following the previous decision, directed the AO to recompute the interest under sections 234A, 234B, and 234C by taking into account the tax deductible on the total income of the assessee. The AO was instructed to provide a fair and reasonable opportunity for the assessee to be heard in this matter.

In conclusion, the Tribunal allowed the appeal of the assessee for statistical purposes and pronounced the order in open court on 20th March 2017. The decision was based on the precedent set by a Co-ordinate Bench in the assessee's own case, emphasizing the importance of considering the tax deductible at source while calculating interest under sections 234A, 234B, and 234C.