TMI Blog2023 (5) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... learned coordinate bench in Meters and Instruments Pvt. Ltd [ 1991 (9) TMI 123 - ITAT DELHI-D ] has carved out a clear-cut distinction between cases where an assessee claims payment of tax and otherwise. We are of the opinion that the assessee s above former return dated 08.02.2013 could not have been treated as a defective one so as to trigger applicability of sec.234A interest herein levied in sec.154 rectification proceedings in issue. Both the learned lower authorities action to this effect stands reversed therefore. The assessee s arguments stands accepted in very terms - Assessee appeal allowed. - ITA.No.895/PUN./2022 - - - Dated:- 24-3-2023 - Shri Satbeer Singh Godara, Judicial Member And Dr. Dipak P. Ripote, Accountant M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ked the status from the IT Portal which was only a few days back and hence, the delay in filing the appeal which may kindly be condoned. 2) The learned CIT(A) erred in confirming the enhancement of interest u/s 234A by a sum of Rs.30,77,569/- made by the A.O. in the order u/s. 154. 3) The learned CIT(A) failed to appreciate that a. As the order of asst, u/s 147 itself was null and void, the order u/s 154 rectifying the mistake in that asst, order is bad in law. b. The issue involved of enhancing the interest u/s 234A did not constitute mistake apparent from record and therefore, the order u/s 154 was bad in law and needs to be cancelled. 4) The learned CIT(A) further failed to appreciate that a. The origina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf-assessment tax thereupon. The Assessing Officer thereafter formed his reasons to believe of the assessee s above stated capital gains of Rs.1,86,04,030/- (supra) had escaped assessment. He thus issued sec.148 notice dated 27.03.2018. The assessee filed his second return dated 16.10.2018 in response thereto stating the very income of Rs.1,86,04,026/-. He did not pay any self-assessment tax qua the instant latter return as well. The Assessing Officer then framed his sec.143(3) r.w.s. 147 assessment on 19.11.2018 accepting the returned income. There is further no issue between the parties that the said re-assessment attained finality for want of any challenge made before the higher forums. 6. Now comes the issue of sec.154 rectification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn. Learned counsel lastly posed challenge to validity of sec.148 proceedings itself that in case the assessee s former return is held to be a valid one which declared taxable income from capital gains of Rs.1,86,04,026/-, there would not be any occasion for the Assessing Officer to record his reasons of the same having escaped assessment. 8. Mr. Jasnani on the other hand vehemently supported both the learned lower authorities action levying sec.234A interest in sec.154 rectification in light of CIT vs. Pranoy Roy Anr. [2009] 309 ITR 231 (SC); CIT vs. Kotak Mahindra Finance Limited [2004] 265 ITR 119 (Bom.) and this tribunal s recent adjudication in Dhirendra Narbheram Sheth vs. ITO, Ward-2(3)(5), Rajkot [2023] 147 taxmann.com 150 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, the Ld. Counsel argued that if the assessee filed a return of income without attaching the proof of advance tax or self-assessment tax then the return would be a defective one and if the assessee could not remove the defect within 15 days from the date of receipt of intimation from the Assessing Officer then such a return shall be treated as an invalid return. The Ld. Counsel for the assessee pointed out that because of financial stringency the assessee could not make the payment of advance tax before the expiry of the relevant financial year. It was further submitted that the same tight financial position continued even when the return had to be filed and that the assessee s bank account was attached and the payments were recovered by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by him would not be a defective one. If the interpretation of the assessee were to be accepted that a return could not be filed without payment of advance tax. self-assessment tax etc., then the provisions of section 140A(3), re-enacted w.e.f., 1-4-1976, would be rendered meaningless. A provision of law has to be interpreted in such a way that its purpose is effectuated and not nullified or negated. We are of the considered opinion that even if the assessee had financial stringency and could not pay advance tax or self-assessment tax in time, nothing prevented it from filing the return of income on time. On a query from the Bench, the Ld. Counsel for the assessee submitted that in this case, the books of account had already been audited a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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