2024 (1) TMI 419

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..... essment was framed by the Income-tax Officer, Ward(1), Hosur for the assessment year 2010-11 dated 13.12.2018, u/s. 143(3) r.w.s. 147 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). 2. At the outset, ld. Counsel for the assessee stated that he has raised a jurisdictional issue in its Cross Objection and hence first Cross Objection should be taken up for hearing. The only issue in this Cross Objection raised by assessee is that, charging of interest u/s. 234A, 234B & 234C of the Act is highly debatable and that cannot be rectified by the Assessing Officer while acting u/s. 154 of the Act. For this jurisdictional issue, assessee in its Cross Objection has raised seven grounds which are argumentative and exhaustive. Hence, .....

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..... eady been charged u/s. 234A of the Act and rightly computed. The Assessing Officer in his rectification order passed u/s. 154 r.w.s. 143(3) r.w.s. 147 of the Act dated 19.01.2021, recomputed the interest and charged the interest for 81 months and thereby raised demand notice for an amount of Rs. 53,938/- which is subject matter on dispute now before us. 4. Aggrieved against this rectification order, the assessee preferred an appeal before the CIT(A). The CIT(A) on merits deleted disallowance by observing that as per provisions of Act and provisions of section 234A of the Act, it is clear that the return of income for any assessment year, required by a notice u/s. 148 of the Act issued after the determination of income under sub-section (1) .....

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..... (Mum), wherein the chargeability of interest u/s. 234A in case of return filed u/s. 147 r.w.s. 148 of the Act was under dispute. This is one of the view of the Tribunal. Even Hon'ble Delhi High Court in the case of CIT vs. Salora International Limited (2010) 329 ITR 568 (Del) held that charging of interest u/s. 234B and 234C of the Act by the ld. AO, as a consequence of the order passed u/s. 154 of the Act, was a debatable issue which a AO could not do by invoking the provisions of Sec. 154 of the Act. Hence, while acting u/s. 154 of the Act, interest u/s. 234A of the Act in the present case cannot be charged. Hence, this jurisdictional issue of the assessee's cross objection is allowed, 7. Since we have adjudicated the jurisdictional iss .....

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