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2016 (2) TMI 274 - HC - Income TaxInterest under Section 234A determined before taking notice of self assessment payment under Section 140A - Held that:- In the absence of any statutory provision made for reducing such amount paid towards self assessment tax, the Authorities proceeded to levy interest on the entire amount de hors the payment of ₹ 40 lakhs made by the Assessee towards the self assessment tax before the due date of filing of return of income. A similar question was considered in the case of Pranoy Roy [2008 (9) TMI 150 - SUPREME COURT ] wherein considered by the Central Board of Direct Taxes in Circular No.2/2015 dated 10.2.2015 and the Board has decided that no interest under Section 234A of the Act is chargeable on the amount of self assessment tax paid by the Assessee before the due date of filing of return of income. This circular was not available at the time of the Tribunal deciding the matter. Accordingly, we are of the view that the Tribunal had no occasion to examine the case of the Assessee in the light of the Circular No.2/2015 dated 10.2.2015 and its applicability thereof to the present case. Hence, it would be appropriate for us to remand the matter to the Tribunal to examine the issue of payment of interest under Section 234A of the Act on the amount of self assessment tax paid by the Assessee before the due date of filing of return of income in the light of the Judgment of the Apex Court in the case of Pranoy Roy [supra], as well as the Circular No.2/2015 dated 10.2.2015. Matter is remitted back to the Tribunal to address on these issues and to pass appropriate orders in accordance with law after providing an opportunity of hearing to both the parties leaving open all the contentions
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