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TMI Blog2024 (11) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... ard to the assessee before levying interest u/s. 234A. 3. The Ld. CIT(A) has erred in law and on facts and circumstances while upholding the actions of AO for imposition of interest amounting to Rs. 7,18,983/- u/s. 234A beyond the date on which self assessment tax including the interest u/s. 234A upto the date is already paid. 4. The Ld. CIT(A) as well AO, CPC has erred in calculating the interest u/s. 234A till the date of filing of income tax return ignoring the fact that interest should be calculated only till the date of deposition of tax in light of relief provided by CBDT circular. 5. The Ld. CIT(A) as well as AO, CPC has erred in facts and law in interpreting the circulars as well as judicial rulings. 6. The Ld. CIT(A) as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee by upholding the action of the AO, CPC on the contention that the assessee had opportunity to remit the self assessment tax before 31st October, 2021 but did not do so and CBDT circulars do not grant the benefit of extension to interest 234A of the Act. 3. Aggrieved with the aforesaid action of the Ld. CIT(A), assessee is in appeal before us. 4. At the time of hearing, Ld. Counsel for the assessee has submitted that Ld. CIT(A) has erred in upholding the actions of AO for imposition of interest amounting to Rs. 7,18,983/- u/s. 234A beyond the date on which self assessment tax including the interest u/s. 234A upto the date is already paid and also wrongly calculating the interest u/s. 234A till the date of filing of income tax re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 29th November 2021). However, the CPC / Ld. AO computed interest till the date of filing return i.e. 7th March 2022. * Ld. CIT(A) upheld that action of CPC / Ld. AO on the contention that the Appellant had opportunity to remit the self-assessment tax before 31st October 2021 but did not do so and CBDT Circulars do not grant the benefit of extension to interest u/s 234A. * In this regard, we wish place reliance on the landmark decision of Hon'ble Delhi High Court in the case of Dr. Prannoy Roy Vs CIT [2002] 121 Taxman 314 (Delhi) as upheld by Hon'ble Supreme Court in the case of CIT vs Prannoy Roy [2009] 179 Taxman 53 (SC). In the aforementioned decisions it has been held that the interest u/s 234A is compensatory and not penal in natur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the date of filing return i.e. 7th March 2022 and Ld. CIT(A) upheld that action of CPC / Ld. AO on the contention that the assessee had opportunity to remit the self-assessment tax before 31st October 2021 but did not do so and CBDT Circulars do not grant the benefit of extension to interest u/s 234A. We find considerable cogency in the contention of the Ld. AR that the decision of Hon'ble Delhi High Court in the case of Dr. Prannoy Roy Vs CIT [2002] 121 Taxman 314 (Delhi) which was upheld by Hon'ble Supreme Court in the case of CIT vs Prannoy Roy [2009] 179 Taxman 53 (SC), fully supports the case of the assessee, wherein, it has been held that the interest u/s 234A is compensatory and not penal in nature and interest is payable where tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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