GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2015 (11) TMI 795 - ITAT MUMBAI

2015 (11) TMI 795 - ITAT MUMBAI - [2015] 42 ITR (Trib) 170 (ITAT [Mum]) - Levy of interest under sections 234B and 234C - 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 - Held that:- The Assessing Officer is accordingly directed to compute .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

150 - SUPREME COURT ] the Assessing Officer ought to have taken the self-assessment tax paid before the due date of filing of return - Decided in favour of assessee for statistical purposes.

Also taking into consideration the decision of the hon'ble Gujarat High Court in the case of Bharatbhai B. Shah v. ITO [2013 (10) TMI 1025 - GUJARAT HIGH COURT] and decision of the learned Commissioner of Income-tax (Appeals)-5 in the case of brother of the assessee namely "Sh. Bharat Vinod Daftar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2013. 2. The assessee has taken the following grounds 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 ₹ 4,51,054 instead of the duly chargeable interest under section 234C at ₹ 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 ₹ 6,09,775 whi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

erest under section 234B at ₹ 4,87,820. d. wrongly interpreting the law on the provision of sections 234C and 234A. e. not correctly considering the calculation of interest under sections 234C and 234A. 2. The appellant crave leave to add, delete or substantiate any grounds of appeal at the time of hearing." 3. The brief facts of the case are that the assessee had filed return of income for the assessment year 2007-08 on March 18, 2008. Order under section 143(1) was passed on Decembe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

axes along with the interest up to the date of the payment of taxes has been paid by the assessee before the due date of filing of the return ; following the Supreme Court decision in the case of CIT v. Pranoy Roy [2009] 309 ITR 231 (SC), he directed the Assessing Officer (hereinafter referred to as the AO) not to charge the interest under 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

urn. The Assessing Officer also computed and charged interest under sections 234B and 234C of the Act. Against the said order giving effect to the Commissioner of Income-tax (Appeals)'s order, the assessee again filed an appeal before the Commissioner of Income-tax (Appeals). 6. The contention of the assessee with regard to the levy of interest of ₹ 4,51,056 under section 234C has been that the interest should be charged only at ₹ 1,20,855. That the long-term capital gain had acc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

st under section234C for the period of one month as works out to ₹ 1,20,855 has been duly considered and reflected in the return of income and computation of income. Reliance was placed by the assessee on the decision of the Rajasthan High Court in the case of CIT v. Smt. Premlata Jalani [2003] 264 ITR 744 (Raj). It was further submitted that the capital gain income was received by the assessee by actual realisation only on April 5, 2007 and the same was credited in the bank account of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

yable 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 proviso to section 234C is available to an assessee, only if the assessee pays the taxes arising out of the capital gains as part of the remaining .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ial year. He therefore held that the Assessing Officer rightly levied the interest under section 234C as per the provisions of the law. He also upheld the levy of interest under section 234B observing that as per the computation there was a shortfall of ₹ 84,378 in the payment of taxes as on July 31, 2007, i.e., on the last date of filing of the return. The learned Commissioner of Income-tax (Appeals) also upheld the findings of the Assessing Officer to the effect that interest under secti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er 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 in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

T v. Smt. Premlata Jalani [2003] 264 ITR 744 (Raj) in relation to the issue of computation of interest under section 234C wherein it has been held that liability to pay tax by way of advance tax in case of capital gains arises only after the transaction has taken place. The learned authorised representative has further relied on the decision of the hon'ble Gujarat High Court in the case of Bharatbhai B. Shah v. ITO [2013] 355 ITR 373 (Guj) in relation to the issue of levy of interest under s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

has allowed the appeal vide his order dated September 17, 2013 in appeal No. IT-50/12-13 has allowed the claim of the brother 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 plac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ble under section 234C keeping in view the said decision of the High Court in the case of Smt. Premlata Jalani [2003] 264 ITR 744 (Raj). The asses see has computed the interest at ₹ 1,32,567. Apparently, the computation given by the assessee appears to be correct. Neverthe less, the Assessing Officer may verify and charge it accordingly. 4.2 As regards the interest chargeable under section 234B, it is noted that the Assessing Officer has computed the amount at ₹ 5,42,106 whereas as p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ection 234B will have to be modified. The Assessing Officer accordingly is directed to re-compute the interest under section 234B also. 4.3 As regards the interest chargeable under section 234A, the assessee has relied on the decision of the hon'ble Supreme Court in the case of CIT v. Pranoy Roy [2009] 309 ITR 231 (SC) and submitted that the Assessing Officer ought to have taken the self-assessment tax paid before the due date of filing of return. The Assessing Officer is accordingly directe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Advanced Search


Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

20-7-2017 IT

20-7-2017 GST CESS Rate

19-7-2017 IT

19-7-2017 IT

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

More Notifications


Latest Circulars:

21-7-2017 Goods and Services Tax

20-7-2017 Goods and Services Tax

20-7-2017 Goods and Services Tax

19-7-2017 Goods and Services Tax

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

More Circulars



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version