TMI Blog2015 (1) TMI 1252X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst assessee - I.T.A. No.297/Bang/2014 - - - Dated:- 23-1-2015 - SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI JASON P. BOAZ, ACCOUNTANT MEMBER Appellant By : Smt. Sheetal, Advocate. Respondent By : Shri Bijoy Kumar Panda, Addl.CIT, (D.R) ORDER Per Shri Jason P. Boaz : This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-II, Bangalore dt.2.12.2013 for Assessment Year 2009-10. 2. The facts of the case, briefly, are as under :- 2.1 The assessee, Prop. Of Sharma Transports, filed his return of income for Assessment Year 2009-10 on 30.11.2009 declaring total income of ₹ 2,84,79,211. This return of income was processed under Section 143(1) of the Income Tax Act, 1961 (herein after referred to as 'the Act') and the case was subsequently taken up for scrutiny. The assessment was completed under Section 143(3) of the Act by order dt.29.11.2011, wherein the income of the assessee was determined at ₹ 2,91,35,710 as against the returned income of ₹ 2,84,79,211 in view of the following disallowances :- (i) Disallowance of excess depreciation claimed on vehicles : ₹ 4,04,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The Grounds at S.Nos.1 and 5 of the assessee's appeal are general in nature and not being urged before us, are dismissed as infructuous. 6. Charging of interest u/s. 234A and 234B of the Act. 6.1 The Grounds raised at S.Nos.2 to 4 constitute the only issue of dispute in this appeal. In these grounds, the assessee contends that the learned CIT(A) s order is erroneous in not appreciating that the assessee was charged interest under Section 234A and 234B of the Act excessively and not that the said interest was not chargeable at all. The assessee also contended that the judicial pronouncements by the Hon'ble Apex Court in the cases of Prannoy Roy (supra) and the Hon'ble Gujarat High Court in Bharatbhai B Shah V ITO reported in (2007) 31 Taxman.com 34 were squarely applicable to the assessee's case and ought to have been considered and followed by the authorities below. The learned Authorised Representative of the assessee was heard in the matter and she reiterated the contentions put forth in the grounds raised; which were also put forth before the learned CIT(A) in appellate proceedings. It was pleaded that in view of the above, the assessee's working of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the same under Section 154 of the Act vide letter dt.15.12.2011 but the Assessing Officer in his order under Section 154 of the Act dt.18.5.2012 rejected the appellant s application. In the appeal filed against the assessment / rectification order so made, the appellant is not agitating the quantum of income assessed but is questioning the amount of interest levied under Section 234A and 234B of the Act. ; the appellant s ground is that interest under Section 234A is not leviable on the amount of tax paid after the date of payment up to the date of filing of the return. The appellant contends that, instead of the interest of ₹ 2,06,932 and ₹ 5,51,822 levied under Section 234A and 234B respectively by the Assessing Officer, the correct amount of interest leviable is only ₹ 34,116 and ₹ 4,99,921. From the above, it can be seen that the main contention of the assessee is his grievance against excessive levy of interest under Section 234A and 234B. To support his argument he has relied on the decision of Supreme Court in the case of CIT Vs. Prannoy Roy reported in 309 ITR 231. In support of his contentions he has also relied on the decision of Gujarat Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt assessee. As regards assessee's contention at para 4 of the written submission regarding the working of interest, I find the Assessing Officer s working to be correct on the following grounds : (i) The Act under Section 234A(1) provides for giving credit to Advance Tax paid and tax deducted / collected at source. 1) Where the return of income for any assessment year under sub-section (4) of section 139, or in response to a notice under sub-section (1) of section 142, is furnished after the due date, or is not furnished the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and a) where the return is furnished after the due date, ending on the date of furnishing of the return; or b) Where no return has been furnished, ending on the date of completion of the assessment under Section 144. On the amount of the tax on the total income as determined under sub-section (1) of section 143, and where a regular assessment is made, on the amount of the tax on the total income determined under regular assessment, as reduced by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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