9911796707
TMI Blog2015 (11) TMI 795X X X X Extracts X X X X X X X X Extracts X X X X ..... of appeal : "1. In the circumstances and facts of my case, the learned Commissioner of Income-tax (Appeals) has erred in : a. confirming charging of interest under section 234C at Rs. 4,51,054 instead of the duly chargeable interest under section 234C at Rs. 1,20,855 by erroneously relying on the proviso to section 234C and erroneous interpretation of law. b. confirming levy of interest under section 234A at Rs. 6,09,775 which is not chargeable in point of law and payable since the tax due as per the returned income has been fully paid prior to the due date of furnishing the return of income and which levy is contrary to the direction of the Commissioner of Income-tax (Appeals) order dated November 3, 2011. Reliance on point of law is p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 234A after verification of the facts whether all the tax on returned income has been paid by the assessee before the filing of the return. In relation to the issue of levy of interest under sections 234B and 234C, the learned Commissioner of Income-tax (Appeals) directed the Assessing Officer to modify the charging of interest in accordance with provisions of law. 5. Thereafter, the Assessing Officer passed an order dated April 16, 2012 giving effect to the order of the Commissioner of Income-tax (Appeals) and thereby charging interest under section 234A, stating that the assessee had short paid the taxes before the due date of filing the return. The Assessing Officer also computed and charged interest under sections 234B and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after March 15, 2007, i.e., for one month at Rs. 1,24,903 instead of Rs. 4,51,055 as worked out by the Assessing Officer. The assessee further submitted that consequent upon recalculation of interest chargeable under section 234C and deletion of interest charged under section 234A, the Assessing Officer be directed to rework interest under section 234B. It was submitted that since the tax payable included interest under sections 234B and 234C up to July 31, 2007 which had been fully paid by self-assessment tax and in fact the assessee had paid excess self-assessment tax resulting in refund due to the assessee. 7. The learned Commissioner of Income-tax (Appeals) however agreed with the view of the Assessing Officer that the benefit of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the interest was duly paid on the due date of filing of return, i.e., on July 31, 2007. Aggrieved by the order of the learned Commissioner of Income-tax (Appeals), the assessee has come in appeal before us. 8. We have heard the rival contentions of the learned representatives of the parties. The assessee had received long-term capital gains on March 28, 2007. The contention of the learned authorised representative has been that interest under section 234C should have been computed only for a period of one month from March 16, 2007 to March 31, 2007, because the liability for tax has accrued after the date for payment of third instalment, i.e., after March 15, 2007. 9. The Assessing Officer however, has worked out the interest for all th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other of the assessee observing as under : "The assessee has also relied on the decision of the hon'ble High Court of Rajasthan in the case of CIT v. Smt. Premlata Jalani [2003] 264 ITR 744 (Raj) wherein it has been held that liability to pay tax by way of advance tax in respect of transactions resulting in capital gains arises only after the transaction has taken place and that prior to that date there is no liability to advance tax on income arising as capital gains. I have considered the issue and taken note of the computation made by the Assessing Officer as well as that submitted by the asses see. In view of the said decision, interest under section 234C will have to be worked out only for a month and not for all the three quarter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf-assessment tax paid before the due date of filing of return. The Assessing Officer is accordingly directed to recompute the interest under section 234A as per the decision of the hon'ble Supreme Court in the said case only on the difference amount between tax assessed and amount which the assessee had paid before the due date. As per the assessee no such difference remains, if interest under section 234C is computed in accordance with the decision of the hon'ble High Court in the case of Smt. Premlata Jalani (supra). Apparently, the assessee's this claim appears to be correct. The Assessing Officer may however verify the same and recompute the interest under section 234A, if any. 5. For statistical purposes, the appeal is tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
