TMI Blog2010 (3) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 and principles of natural justice to the extent of not giving proper credit for taxes paid by the appellant before calculating the aforesaid interests. The learned Commissioner of Income-tax (Appeals) erred in confirming the said impugned assessment order and dismissing the appeal filed by the appellant. The facts of the case stated in brief are that search and seizure operation under section 132 of the Income-tax Act, 1961 was carried out at the business premises of the assessee M/s. Vardhman Associates P. Ltd. and its directors on March 17, 2006. In the case of the assessee, the Assessing Officer issued notice under section 143(2) on October 18, 2007. Notices under sections 143(2) and 142(1) along with a detailed questionnaire dated N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 on November 2, 2006, no interest could be charged for the period beyond November, 2006, if the credit for the tax paid is given. The Assessing Officer had merely proceeded on the basis of delay in filing the return and on the basis of payment of taxes by the assessee. It was also submitted that Revenue was not deprived of due taxes after November, 2006 and, therefore, interest under section 234A was not chargeable. The assessee placed reliance on the decision in the case of Dr. Prannoy Roy v. CIT reported in [2002] 254 ITR 755 (Delhi). The Commissioner of Income-tax (Appeals) confirmed the levy of interest under section 234A by observing as under : "I have considered the submissions raised on the issue of levy of interest under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to be exercised in a particular manner then the said authority has to be exercised it only in the manner provided in the statute itself. In view of the above discussion, the Assessing Officer has rightly exercised his jurisdiction to impose interest for the delay in filing of the return. So there is no justification on my part to interest with such action of the Assessing Officer. Accordingly the levy of interest under section 234A is sustained." As regards the charging of interest under section 234B, the learned Commissioner of Income-tax (Appeals) observed that no specific reasons were raised during the course of the appellate proceedings and accordingly the interest payable under section 234B being mandatory and consequential in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 139(1) or 139(4) or in response to notice under section 142(1) is furnished after the due date or is not furnished, the assessee shall be liable to pay simple interest under section 234A at the rate specified in the statute for every month or part of the month comprises in the period commencing on the date immediately following the due date : (a) where the return is furnished after the due date and ending on the date of furnishing of return ; or (b) where no return has been furnished ending on the date of completion of assessment under section 144 of the Act. On the amount of tax on the total income as determined under section 143(1) ; and where the regular assessment is made, on the amount of tax on the total income determi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een deposited prior to the due date of filing of the return, and not where tax has been paid, but the return has to be filed belatedly. The decision of the hon'ble Delhi High Court in the case of Dr. Prannoy Roy v. CIT [2002] 254 ITR 755 (Delhi) has been upheld by the hon'ble Supreme Court in the case of CIT v. Pranoy Roy [2009] 309 ITR 231 (SC). In the case of Dr. Prannoy Roy, the due date for filing the return was October 31, 1995. The return was filed on September 29, 1996. However, the assessee paid taxes due on September 25, 1995 before the due date of filing of the return. In a case where the assessee has already paid the self-assessment tax due on or before the due date of filing the return and files the return late, a plain reading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006 to November, 2007 when the return of income was filed, will be payable on the assessed tax after reducing the amount of tax paid at Rs. 13,84,774. The Assessing Officer is directed to compute the tax payable under section 234A accordingly. As regards charging of interest under section 234B, learned counsel for the assessee had not advanced any arguments and since charging of interest under section 234B is mandatory and consequential to additions made, we do not find any infirmity in the order passed by the Commissioner of Income-tax (Appeals) confirming the charging of interest under section 234B of the Act. In the result, the appeal filed by the assessee is partly allowed. The order pronounced in open court on the 12th March, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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