FEROZE NAVAL PATCH ,MUMBAI V. ITO WARD 19(1)(5), MUMBAI

ITA 1269/MUM/2025

AI Insights

The case involves an appeal by the assessee, Feroze Naval Patch Adville, against the order of the CIT(A) pertaining to the assessment year 2022-23. The primary grievances were the incorrect determination of interest under section 234B and the additional income-tax liability. The assessee argued that the interest charged was higher than what was calculated in the updated return filed, and similarly, the additional tax liability was also contested. The Tribunal, after reviewing the case and hearing the Departmental Representative, found merit in the assessee's arguments and directed recalculations as per the correct application of the law.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712674 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA P. KAUSHIK; DR
• Section: 234B

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 1269/Mum/2025 Assessment Year: 2022-23 Feroze Naval Patch Adville 34, Ridge Road Mumbai - 400006 [PAN: ANJPP7176L] Vs ITO, Ward – 19(1)(5) अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : None Revenue by : Ms. Kavita P. Kaushik, Sr. D/R सुनवाई की तारीख/Date of Hearing : 28/07/2025 घोषणा की तारीख /Date of Pronouncement: 30/07/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order of the ld. CIT(A)/ Addl./JCIT(A)-3, Delhi [hereinafter the ‘ld. CIT(A)’] dated 28/01/2025 pertaining to AY 2022-23. 2. The grievance of the assessee reads as under:- “1) In the facts and circumstances of the case and in law, the learned A.O. erred in incorrectly determining interest under section 234B to be Rs. 8,27,421/- instead of Rs. 2,40,219/- determined by the assessee while filing updated return for A.Y. 2022- 23. 2) In the facts and in the circumstances of the case and in law, the Learned A.O. erred in incorrectly determining the additional income-tax liability at Rs.9,46,215/- instead of Rs.8,33,038/-.” Printed from counselvise.com I.T.A. No. 1269/Mum/2025 2 3. None appeared on behalf of the assessee in spite of notice. We decided to proceed ex-parte. 4. The ld. D/R was heard at length. Case records carefully perused. 5. Briefly stated the facts of the case are that while processing the return of income u/s 143(1) of the Act interest u/s 234B of the Act was levied at Rs. 8,27,421/- whereas the claim of the assessee is that the interest should have been levied at Rs. 2,40,219/- as he has paid the self- assessment tax and the interest should have been charged up to the date of payment of tax u/s 140B of the Act. 6. We have carefully perused the impugned order of processing u/s 143(1) of the Act. In our considered opinion, the provisions of Section 234B(2) of the Act, have not been applied properly. The relevant provisions read as under:- “Interest for defaults in payment of advance tax. 234B. (1) ……………………………. (2) Where, before the date of [determination of total income under sub-section (1) of section 143 or] completion of a regular assessment, tax is paid by the assessee under section 140A or otherwise,- (i) interest shall be calculated in accordance with the foregoing provisions of this section up to the date on which the tax is so paid, and reduced by the interest, if any, paid under section 140A towards the interest chargeable under this section; (ii) thereafter, interest shall be calculated at the rate aforesaid on the amount by which the tax so paid together with the advance tax paid falls short of the assessed tax.” 7. The aforementioned relevant provision clearly provides that interest shall be calculated up to the date on which the tax is so paid. Therefore, the contention of the assessee is accepted and the AO is Printed from counselvise.com I.T.A. No. 1269/Mum/2025 3 directed to levy interest up to the date of tax paid by the assessee. Ground No. 1 is accordingly allowed. 8. Coming to Ground No. 2, the grievance relates to the determination of additional income-tax liability at Rs. 9,46,215/- instead of Rs. 8,33,038/-. Explanation (iii) to section 234B of the Act provides as under:- Explanation 3.-In Explanation 1 and in sub-section (3),- (i) “tax on total income as determined under sub-section (1) of section 143” shall not include the additional income-tax, if any, payable under section 140B or section 143; and (ii) tax on the total income determined under such regular assessment shall not include the additional income-tax payable under section 140B.] 9. This explanation is substituted by the Finance Act, 2022, w.e.f. 01/04/2022 which is applicable to the assessment year under consideration. The AO is directed to levy additional tax as per explanation (iii) to section 234B of the Act mentioned hereinabove. With the above directions, appeal of the assessee is allowed. 10. In the result, appeal of the assessee is allowed. Order pronounced in the Court on 30th July, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 30/07/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs Printed from counselvise.com I.T.A. No. 1269/Mum/2025 4 आदेश की \u0014ितिलिप अ\u0019ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001b / The Appellant 2. \u0014 थ\u001b / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय \u0014ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai Printed from counselvise.com "