TMI Blog2020 (2) TMI 1695X X X X Extracts X X X X X X X X Extracts X X X X ..... M For the Assessee : Krishna Gujarathi. For the Revenue : Shri S.P. Walimbe. ORDER PER D. KARUNAKARA RAO, AM : This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Appeals), Pune-5, Pune, dated 11.05.2017 for the Assessment Year 2013-14. 2. Briefly stated the relevant facts include that the assessee is an individual engaged in the business of Real Estate Development and Construction of residential as well as commercial projects. The assessee filed the return of income on 31.08.2014 declaring total income of Rs.10,44,53,300/-. During the year under consideration, the assessee also had income from house property, income from business and income from other sources. The ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same read as under: 7. The first issue raised in this appeal is against confirmation of disallowance u/s.14A . The facts apropos this issue are that the assessee earned exempt income but did not offer any disallowance u/s.14A. The AO computed disallowance at Rs.30,35,585/- only under Rule 8D(2)(iii), being, 0.5% of the average value of investments. The assessee pleaded in the same manner before the ld. CIT(A) as was done for the earlier year that only common expenses should be considered and the expenses incurred exclusively in relation to taxable income, should be reduced. The assessee submitted such calculation which has been reproduced at page 12 of the impugned order, thereby working out a sum of Rs.13,297/- as relatable to both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the calculation of interest u/s.234A. The ld. CIT(A) directed the AO to follow CBDT Circular No.2/2015, dated 10-02-2015. The assessee is aggrieved by such a decision of the ld. CIT(A) in not giving further relief in interest u/s.234A in respect of self-assessment tax paid after the due date u/s.139(1) but before the filing of return of income. 10. We have heard both the sides and gone through the relevant material on record. It is an undisputed position that the assessee filed return belatedly and hence, is liable to be visited with interest u/s.234A of the Act. The case of the assessee is that the amount of self-assessment tax paid by him prior to the filing of return should be reduced in the process of calculation of interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee before the due date of filing of return of income . It is this circular which has been followed by the ld. CIT(A) in restoring the matter to the AO for making a fresh calculation of disallowance of interest u/s.234A. 11. The case of the assessee is that though the impugned order provides for exclusion of self assessment tax paid before the due date of the return of income, but there is no such direction for reducing the amount of self assessment tax paid by the assessee after the due date but before the actual filing of return. It is the case of the assessee that similar direction ought to have been given for such later interest payment as well. We find force in the argument of the ld. AR. It is a settled legal position t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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