Jyotiben Mukundbhai Rana, Surat V. The Income Tax Officer, Ward-2(2)(2), Surat

ITA 2476/AHD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1922 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-01-2016
• Assessment Year: 2013-2014
• Appeal Filed On: 20-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIV SEWAK
• Keywords: Rectification of order
• Section: 234B; 154

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA.NO.2476/AHD/2015 /BLOCK ASSTT. YEAR: 2013-2014 JYOTIBEN MUKUNDBHAI RANA 3/3711-A, MACHIHIPURA NAVAPURA SURAT 395 002. VS ITO, WARD-2(2)(2) SURAT. %& / (APPELLANT) '( %& / (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI SHIV SEWAK, SR.DR / DATE OF HEARING : 13/01/2016 / DATE OF PRONOUNCEMENT: 01/04/2016 )*/ O R D E R THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAIN ST THE ORDER OF THE LD.CIT(A)-1, SURAT DATED 30.6.2015 PASSED FOR THE A SSTT.YEAR 2013-2014. 2. THE ASSESSEE HAS TAKEN FOUR GROUNDS OF APPEAL, B UT HER GRIEVANCE REVOLVES AROUND A SINGLE ISSUE WHEREBY SHE HAS PLEA DED THE LD.CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF THE AO TO CHARGE EXCESS INTEREST UNDER SECTION 234A AND 234B OF THE ACT AMOUNTING TO RS.37 ,920/- AND RS.3,102/- RESPECTIVELY. 3. THE ASSESSEE HAS FILED HER RETURN OF INCOME ON 2 7.4.2014, AS AGAINST THE DUE DATE OF FILING OF RETURN ON 5.8.2013. THE AO H AS CHARGED INTEREST UNDER SECTION 234A AND 234B OF THE INCOME TAX ACT. THE A SSESSEE FILED AN ITA NO.2476/AHD/2015 2 APPLICATION UNDER SECTION 154 OF THE INCOME TAX ACT FOR RECTIFICATION OF THE INTIMATION SERVED UPON HER UNDER SECTION 143(1) OF THE INCOME TAX ACT. THE APPLICATION MOVED BY THE ASSESSEE UNDER SECTION 154 OF THE ACT WAS REJECTED BY THE AO VIDE ORDER DATED 9.2.2015. DISSATISFIED WITH THE ORDER OF THE AO, THE ASSESSEE CARRIED THE MATTER BEFORE THE LD.CIT(A ). THE ASSESSEE FILED WRITTEN SUBMISSIONS BEFORE THE LD.CIT(A) WHICH HAS BEEN REPRODUCED BY THE LD.CIT(A). THE LD.CIT(A) AFTER GOING THROUGH THE S UBMISSIONS OF THE ASSESSEE DID NOT FIND ANY MERIT IN THE CLAIM OF THE ASSESSEE , AND ACCORDINGLY, REJECTED THE APPEAL. 4. BEFORE ME, IN RESPONSE TO THE NOTICE OF HEARING, WRITTEN SUBMISSIONS FROM THE OFFICE OF HIREN MM. DIWAN & CO., CHARTERED ACCOUNTANTS HAS BEEN FURNISHED. HOWEVER, NO-ONE HAS COME UP TO ARGUE TH E APPEAL, THEREFORE, WITH THE ASSISTANCE OF THE LD.DR, I HAVE GONE THROUGH TH E WRITTEN SUBMISSIONS OF THE ASSESSEE AND PROCEED TO DECIDE THE APPEAL OF TH E ASSESSEE EX PARTE . THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE AND REPRO DUCED BY THE LD.CIT(A) ARE SELF-EXPLANATORY. THEREFORE, I DEEM IT PERTINENT T O TAKE NOTE OF SUBMISSIONS. THEY READ AS UNDER: 'UNDER THE INSTRUCTIONS AND ON THE BASIS OF THE INF ORMATION AND EXPLANATION GIVEN BY MY ABOVE CLIENT, I HAVE TO SUB MIT AS UNDER WITH THE PRAYER TO ALLOW THE-ABOVE APPEAL. (1) GROUND NO.L: PRAYER TO QUASH THE ACTION OF THE ID. AM, OF REJECTING THE RECTIFICATION APPLICATION DATED 08-01 -2015 FILED BY THE APPELLANT U/S. SEC. 154 OF THE ACT. AND GROUND NO.2: PRAYER TO DELETE THE EXCESS INTEREST CHARGED U/SEC.234 AND 234B OF THE ACT TO THE TUNE OF RS.37, 290/- AND RS.3,L02/- RESPECTIVELY. A) FROM THE COPY OF RECTIFICATION ORDER PASSED BY THE ID. A.O. AND ENCLOSED WITH THE APPELLATE MEMO, YOUR HONOUR WOULD FIND THAT THE ID. A.O. HAS CALCULATED THE INTEREST PAYABLE BY THE APPELLANT ITA NO.2476/AHD/2015 3 U/SEC.234A OF THE ACT AT RS.1,14,040/- AS AGAINST R S.76,750/- CALCULATED TED BY THE APPELLANT. B) AS CAN BE SEEN FROM THE ENCLOSED COPY OF FIRST PAGE OF INTIMATION U/SEC. 143(1) OF THE ACT AT PAGE NO.5, THE DUE DATE FOR HUNG THE RETURN OF INCOME FOR THE CURRENT YEAR WAS 05-08-201 3. KINDLY NOTE THAT THE APPELLANT MADE THE PAYMENTS OF SELF- ASSESSMENT TAX U/SEC. 140A OF THE ACT AS PER FOLLOWING DETAILS: SR,NO. DATE AMOUNT (RS.) REMARKS 1 30-11-2013 7,00,000/- COPY OF CHALLAN ENCLOSED AT PAGE NO.6 2 03-01-2014 9,50,000/- COPY OF CHALLAN ENCLOSED AT PAGE NO.6 3 25-03-2014 3S,770/- COPY OF CHALLAN ENCLOSED AT PAGE NO.6 AS YOUR HONOUR IS AWARE, AS PER THE PROVISIONS OF S UB-SECTION(L) OF SECTION 234A OF THE ACT THE INTEREST AT THE RATE OF 1% IS LEVIABLE ON THE SELF-ASSESSMENT TAX PAID BY THE ASSESSEE FOR THE PE RIOD COMMENCING FROM THE DUE DATE FOR FURNISHING THE RETURN OF INCO ME AND ENDING ON THE DATE OF FURNISHING THE RETURN OF INCOME. . AS YOUR HONOUR IS ALSO AWARE, AS PER THE PROVISIONS OF SUB-SECTION (2) OF SEC.234A OF THE ACT, THE AMOUNT OF SELF-ASSESSME NT TAX PAID SHALL FIRST BE ADJUSTED AGAINST THE INTEREST PAYABLE A/SEC. 234 A OF THE ACT AND THE BALANCE SUM SHALL BE CONSIDERED TO BE THE AMOUNT PA ID TOWARDS THE SELF-ASSESSMENT TAX. (E) AS STATED IN THE ENCLOSED COPY OF FIRST P AGE OF INTIMATION ISSUED U/SEC.!43(L) OF THE ACT AT PAGE NO., THE APPELLANT FILED HER RETURN OF INCOME ON 27-03-2014. HOWEVER, BEFORE FILING THE RETURN OF INCOME ON SAID DATE I.E. ON 27-03- 2014 THE APPELLANT MADE THE PAYMENT OF SELF-ASSESSM ENT TAX FROM TIME TO TIME AS DETAILED IN THE PRECEDING PARA 1 (C). ITA NO.2476/AHD/2015 4 (F) FOR YOUR HONOR'S LAND CONSIDERATION, I H AVE SUBMITTED HEREUNDER CALCULATION OF INTEREST PAYABLE U/SEC. 23 4A, 234B & 234C OF THE ACT BY THE APPELLANT AS PER THE PROVISIONS OF T HE ACT. INTEREST CALCULATION U/5 234A PERIOD OF DEFAULT (AUGUST 6, 2013 TO NOVEMBER 30, 2 013) 4*1%* 14255M (1425508) = 57020 PERIOD OF DEFAULT (DECEMBER 1, 2013 TO JANUARY 3, 2 014, PERIOD INCLUDED UPTO JANUARY 31, 2014) 2 * 1% * 949300 (949310(1425 508-476198(700000- 52742[234C]-114Q40[234B]-57020[234A]))) = 18986 PERIOD OF DEFAULT (FEBRUARY 1, 2014 TO MARCH 25, 20 14, PERIOD INCLUDED UPTO MARCH 27, 2014) 2 * 1% * 37209 (37282(949310-912028(950000-1898 6[234BJ- 18986[234A])}} = 744 . INTEREST CALCULATION U/S 234B PERIOD OF DEFAULT (APRIL 1, 2013 TO NOVEMBER 30, 20 13) 8 * 1% * 1425500(1425508) = 114040 PERIOD OF DEFAULT (DECEMBER 1, 2013 TO JANUARY 2, 2 014, PERIOD INCLUDED UPTO JANUARY 31, 2014) 2 * 1% * 949300 (949310(1 425508-476198(700000- 52742[234C]-114040[234B]-57020[234AFFL) = 18986 PERIOD OF DEFAULT (FEBRUARY 1, 2014 TO MARCH 25, 20 14, PERIOD INCLUDED UPTO MARCH 31, 2014) - 2 * 1% * 37200 (37282(9493:* 0-912028(950000-189 86[234B]- 18986[234A]))) = 744 INTEREST CALCULATION U/S 234C 1ST: 3*1%* 427600 (427652 (1425508X30%)) = 12828 ITA NO.2476/AHD/2015 5 IIND: 3 * 1% * 855300 (855305 (1425508 X 60%; 25659 III RD: 1* 1% 1425500 (1425508 (14255@8 X 100%) ) = 14255 (G) AS CAN BE SEEN FROM THE ABOVE CALCULATION, YOUR HONOUR WOULD FIND THAT THE APPELLANT HAS CORRECTLY CALCULATED TH E INTEREST PAYABLE U/S. 234-A, 234-6 AND 234-C OF THE ACT. FROM THE ABOVE INTEREST CALCULATIONS, YOUR HONOUR W OULD FIND THAT THE ID. A.O. HAS ERRED IN CALCULATING INTEREST PAYABLE BY THE APPELLANT/S. 234-A & 234-8 AND ON SUCH ERRONEOUS CALCULATING OF INTEREST, THE ID. A.O. HAS ALSO ERRED IN REJECTING THE RECTIFICATION APPLICATION FILED BY THE APPELLANT. (H) IT IS THEREFORE PRAYED THAT THE ABOVE ERRO NEOUS ACTION OF THE ID. A.O. BE QUASHED AND THE ID. AO. BE DIRECTED TO CHAN GE INTEREST U/S.234- A & 234B AS CALCULATED ABOVE BY THE APP ELLANT AND OBLIGE.' 5. IT IS ALSO PERTINENT TO TAKE NOTE OF THE FINDING OF THE CIT(A) ON THIS ISSUE. IT READS AS UNDER: 6. THE SUBMISSION FILED BY THE APPELLANT IS DU LY CONSIDERED INTER ALIA THE FACTS OF THE CASE. THE APPELLANT HAS FILED THE RETURN OF INCOME ON 27.03.2014 AS AGAINST THE DUE DATE OF FIFING ON 05.08.2013. THE APPELLANT HAS CLAIMED THAT SELF ASSESSMENT TAX OF R S.7,00,000/-, RS.9,50,000/- & RS.38,770/- PAID ON 30.11.2013, 03. 01.2014 & 25.03.2014 SHOULD BE CONSIDERED WHILE WORKING OUT T HE INTEREST PAYABLE U/S.234A OF THE ACT. FURTHER, AS PER P ROVISION OF SUB-SECTION (2) OF SECTION OF 234A OF THE ACT, THE AMOUNT OF SE LF-ASSESSMENT TAX PAID SHALL FIRST BE ADJUSTED AGAINST THE INTEREST PAYABL E U/S.234A OF THE ACT AND BALANCE SUM SHALL BE CONSIDERED TO BE THE AMOUN T PAID TOWARDS THE SELF ASSESSMENT TAX. I HAVE CONSIDERED THE CONTENTI ON OF THE APPELLANT AND FOUND THE SAME AS UNACCEPTABLE. THE PROVISION O F SECTION 234A OF THE ACT IS VERY CLEAR AND UNAMBIGUOUS. IT SAYS THAT IF ANY RETURN IS FILED AFTER 'DUE DATE', THE ASSESSES SHALL BE LIABLE TO P AY SIMPLE INTEREST @ 1% FOR EVERY MONTH (OR PART OF THE MONTH) ON THE AM OUNT OF TAX DETERMINED U/S.L43(L) OR DETERMINED UNDER REGULAR A SSESSMENT AS REDUCED BY THE AMOUNT OF: - ADVANCE TAX - ANY TAX DEDUCTED OR COLLECTED AT SOURCE -XXX - XXX ITA NO.2476/AHD/2015 6 THUS, THE CONTENTION OF THE ASSESSEE FOR REDUCTION OF AMOUNT OF SELF ASSESSMENT TAX AGAINST TAX PAYABLE IS NOT IN ACCORD ANCE WITH LAW. HENCE, THE AO WAS JUSTIFIED IN REJECTING THE RECTIF ICATION APPLICATION FILED TO SEEK AMENDMENT BASED ON REDUCTION OF THE A MOUNT OF TAX PAYABLE BY SELF ASSESSMENT TAX WHICH IS NOT TENABLE IN THE EYES OF LAW. HENCE, THE GROUND OF APPEAL IS HEREBY REJECTED. IN THE RESULT, THE APPEAL IS DISMISSED. 6. ACCORDING TO THE ABOVE FINDING OF THE LD.CIT(A), SECTION 234A OF THE INCOME TAX ACT CONTEMPLATES REDUCTION OF TAX AMOUNT S ON WHICH INTEREST WOULD BE CHARGED ARE OF TWO AMOUNTS VIZ, ADVANCE TA X, AND ANY TAX DEDUCTED OR COLLECTED AT SOURCE. THOUGH THE ASSESSEE HAS NO T FILED THE RETURN WITHIN DUE DATE BUT SHE HAD PAID THE TAXES. THE AMOUNTS WERE D EPOSITED IN GOVERNMENT TREASURY. THE INTEREST ON SUCH TAXES COLLECTED FRO M THE ASSESSEE OUGHT TO HAVE GIVEN. IN OTHER WORDS, HOW THE CREDIT OF THES E AMOUNTS CAN BE DENIED FOR THE PURPOSE OF CHARGING INTEREST UPON THE ASSESSEE UNDER SECTION 234A. THE CALCULATION MADE BY THE ASSESSEE IN HER SUBMISSION, ARE IN ACCORDANCE WITH THE PROCEDURE CONTEMPLATED IN SECTION 234A AND 234B . I ALLOW THE APPEAL OF THE ASSESSEE AND DIRECT THE AO TO GRANT HER THE CRE DITS OF THE AMOUNT CLAIMED IN THE CALCULATION. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE COURT ON 1 ST APRIL, 2016 AT AHMEDABAD. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 01/04/2016