CHANDRA SEKHAR PENDURTHI,HYDERABAD V. ITO., WARD-14(3), HYDERABAD

ITA 560/HYD/2024

AI Insights

The case involves an appeal by Shri Chandra Sekhar Pendurthi against the order of the CIT (A)-NFAC Delhi, concerning the assessment year 2012-13. The primary issues in the appeal were the levy of interest under section 234A and the incorrect calculation of interest under section 234B of the Income Tax Act, 1961. The assessee contended that the Assessing Officer erroneously levied interest under section 234A, claiming that no return of income was filed, despite the return being duly filed and acknowledged. Additionally, the assessee argued that the cash seized during a search and seizure operation, amounting to Rs.23,55,000, was not considered in adjusting the tax liability. The Tribunal found merit in the assessee's arguments and directed the Assessing Officer to re-evaluate the interest calculations under sections 234A and 234B, taking into account the filed return, the seized cash, and the advance tax paid.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315606 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: T RAMA MURTHY
• Keywords: Set aside; FORM 26AS
• Section: 234B

Judgement Text

" ITA No 560 of 2024 Chandra Sekhar Pendurithi Page 1 of 5 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ DB-A ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Madhusudan Sawdia, Accountant Member आ.अपी.सं /ITA No.560/Hyd/2024 (िनधाŊरण वषŊ/Assessment Year: 2012-13) Shri Chandra Sekhar Pendurthi HYDERABAD PAN:AMOPP4019L Vs. Income Tax Officer Ward 14(3) Hyderabad (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Shri T Rama Murthy, CA राज̾ व Ȫारा/Revenue by:: Shri Rahul Singhania, DR सुनवाई की तारीख/Date of hearing: 07/05/2025 घोषणा की तारीख/Pronouncement: 16/05/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal filed by the assessee is directed against the order dated 12/03/2024 of the learned CIT (A)-NFAC Delhi, relating to A.Y.2012-13. 2. The assessee has raised the following grounds of appeal: ITA No 560 of 2024 Chandra Sekhar Pendurithi Page 2 of 5 3. The only grievance of the assessee is regarding the levy of interest u/s 234A and wrong calculation of interest u/s 234B of the I.T. Act, 1961. The learned AR of the assessee has submitted that the Assessing Officer has levied the interest u/s 234A of the Act on the premises that the assessee has not filed the return of income, however, the assessee has duly filed the return of income which is also certified by the Assessing Officer itself placed at page Nos. 11 to 31 of the paper book. He has also referred to the acknowledgement of the return filed placed at page 73 of the paper book and submitted that in the return of income, the assessee has also claimed the adjustment of self-assessment ITA No 560 of 2024 Chandra Sekhar Pendurithi Page 3 of 5 tax against the cash of Rs.23,55,000/-seized during the search & seizure operation. He has also referred to the computation of income annexed to the return of income and submitted that the assessee has duly claimed the adjustment of the seized cash against the tax liability. However, the Assessing Officer has not considered even the return of income filed by the assessee as well as the cash seized during the search & seizure operation, duly claimed and requested by the assessee to be adjusted against the tax liability. The learned AR has further submitted that while giving effect to the order of the learned CIT (A), the Assessing Officer has not calculated the tax u/s 234B of the Act as per the outcome of the order of the learned CIT (A) and therefore, there is a mistake in calculation of the interest u/s 234B of the Act. He has referred the giving effect order placed at pages 34 and 35 of the paper book and submitted that the Assessing Officer has not calculated the right amount of tax u/s 234B while giving effect to the order of the learned CIT (A). Thus, the learned AR has pleaded that the Assessing Officer may be directed to consider the return of income filed by the assessee, advance tax as reflected in Form 26AS as well as the cash seized during the search & seizure operation to be adjusted against the tax liability and then calculate the interest u/s 234A and 234B of the I.T. Act, 1961. 4. On the other hand, the learned DR has submitted that all these claims of the assessee were not reflected from the orders of the authorities below. He has objected to the appeal of the ITA No 560 of 2024 Chandra Sekhar Pendurithi Page 4 of 5 assessee for giving the benefit of the cash seized during the search & seizure operation in the absence of any request made by the assessee. 5. We have considered the rival contentions as well as the relevant material available on record. The Assessing Officer has calculated the interest u/s 234A of the Act on the premises that no return of income was filed by the assessee and therefore, the tax paid, if any, on the self-assessment has not been taken into consideration by the Assessing Officer. From the record, we find that the assessee has filed the return of income for the year under consideration which is also duly certified by the assessee. Further, in the return of income, the assessee has claimed the adjustment of cash seized during the search & seizure operation of Rs.23,55,000/- against the tax liability. Therefore, all these facts are required to be verified and if found correct, then the claim of the assessee is required to be considered while computing the interest u/s 234A of the Act. The assessee has also pointed out that the Assessing Officer has not calculated the correct amount of the interest u/s 234B while passing the giving effect to the order of the learned CIT (A). This aspect is also required to be verified at the level of the Assessing Officer. Accordingly, in the facts and circumstances of the case, we set aside this matter to the record of the Assessing Officer with the direction that the claim of the assessee regarding the correct amount of interest u/s 234A as well as u/s 234B of the I.T. Act, 1961 to be verified and ITA No 560 of 2024 Chandra Sekhar Pendurithi Page 5 of 5 examined as per the facts of the case after giving an appropriate opportunity of hearing to the assessee. 6. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 16th May, 2025. Sd/- Sd/- (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 16th May, 2025 Vinodan/sps Copy to: S.No Addresses 1 Shri Chandra Sekhar Pendurthi, 8-2-696/697 LA Creative Heights, Road No.12, Banjara Hills, Hyderabad 500034 2 Income Tax Officer Ward 14(3) IT Towers, Masab Tank, AC Guards, Hyderabad 500004 3 Pr. CIT – Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "