TMI Blog2023 (6) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... Interest u/s 234C - AO s action in levying interest on the assessed income instead of the returned income - HELD THAT:- As in the case of Aishwarya K. Rai Vs. DCIT[ 2009 (1) TMI 860 - ITAT, MUMBAI] had held that interest u/s 234C of the Act is to be levied on the returned income and not on the assessed income - We direct the AO to restrict the levy of interest under section 234C of the Act to the returned income instead of the assessed income. - ITA No.283/Bang/2023 - - - Dated:- 31-5-2023 - Shri Chandra Poojari, Accountant Member And Shri George George K, Judicial Member For the Assessee : Shri. Chavali Narayan, CA and Shri. Keerthi Narayan, CA For the Revenue : Shri. Gudimella VP Pavan Kumar, JCIT (DR)(ITAT), Bengaluru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hough he had already computed the same as allowable on page 43 of the Rectification dated 21 June 2022 but failed to include the amount while computing the refund amount. Grounds in relation to Interest under section 244A of the Act 7) The Ld. CIT(A) has erred, in not adjudicating the Ground raised in relation to granting of interest under section 244A of the Act. 8) The Ld. CIT(A) has failed to appreciate that the Appellant is eligible for interest under Section 244A and has erred in not adjudicating this ground. 9) The Ld. CIT(A) on a wrong presumption has dismissed the Ground of Appeal treating it to as consequential in nature. Grounds in relation to additional levy of Interest under section 234B and 234C o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e filed appeal before the First Appellate Authority. The CIT(A) directed the AO to examine the issue. The finding of the CIT(A) directing the AO to examine the issue reads as follows: In Ground No.6, the Appellant agitates that the Assessing Officer erred in not granting the legitimate relief claimed by the appellant u/s 90 of the I.T. Act, with respect to non-grant of foreign tax credit. It is not clear from the intimation order u/s 143(1) as well as from the order u/s 154 of the I. T. Act as to under what circumstances the relief claimed u/s 90 of the Act, for foreign taxes paid, amounting to Rs.1,38,21,316/- was not granted by the CPC. From the details submitted during the course of appellate proceedings prima facie, the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act on the assessed income instead of the returned income. 11. We have heard the rival submissions and perused the material on record. The Mumbai Bench of the Tribunal in the case of Aishwarya K. Rai Vs. DCIT [2009] (1) TMI 860 ITAT, Mumbai, had held that interest under section 234C of the Act is to be levied on the returned income and not on the assessed income. In view of the aforesaid order of the Tribunal, we direct the AO to restrict the levy of interest under section 234C of the Act to the returned income instead of the assessed income. It is ordered accordingly. 12. In the result, ground No.11 is allowed. 13. In the result, appeal of the assessee is partly allowed. Pronounced in the open court on the date menti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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