T.C. Healthcare Pvt Ltd., Meerut V. ACIT, Circle-25(1), New Delhi

ITA 528/DEL/2023

AI Insights

The case involves T.C. Healthcare Pvt. Ltd., which appealed against the order of the Learned Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi. The appeal was against the order passed by the AO under section 143(3) of the Income Tax Act, 1961, which included a demand raised on the assessee. The primary contention was whether interest under section 234C could be charged before allowing MAT credit under section 115JAA. The Tribunal heard the arguments and reviewed the materials on record, ultimately deciding in favor of the assessee by directing a recomputation of the interest after allowing the MAT credit.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130705 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 01-08-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 26-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 90; 143(3)

Judgement Text

Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’: NEW DELHI BEFORE, SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.528/Del/2023 (ASSESSMENT YEAR 2017-18) T.C. Healthcare Pvt. Ltd. C/o Kashyap & Co. 114/214, Citi Centre Begum Bridge Road Meerut-250 001 (U.P.) PAN-AAACT 3701G Vs. ACIT Circle-25(1) Delhi (Appellant) (Respondent) Appellant by Sh. P.S. Kashyap, FCA Respondent by Mr. Amit Katoch, Sr. DR Date of Hearing 02/08/2023 Date of Pronouncement 29/08/2023 ORDER PER M. BALAGANESH AM: This appeal of the Assessee arises out of the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, [hereinafter referred to as ‘Ld. CIT(A)’] in Appeal No.CIT(A), Delhi-9/10682/2019-20 against the order ITA No.528/Del/2023 T.C. Healthcare Pvt. Ltd. vs. ACIT Page 2 of 4 passed by ACIT, Circle-25(1), Delhi (hereinafter referred to as the ‘Ld. AO’) u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on 25/12/2019. 2. The only issue to be decided in this appeal is as to whether the interest u/s 234C of the Act could be charged before allowing MAT Credit u/s 115JAA of the Act or not . 3. We have heard the rival submissions and perused the materials available on record. The assessee company is engaged in the business of manufacturing of pharma products and had filed its return of income for the Asst Year 2017-18 on 25.10.2017 declaring total income of Rs 1,22,39,130/-. The assessment was completed u/s 143(3) of the Act on 25.12.2019 accepting the returned income. However, a demand of Rs.4,11,660/- was raised thereon. In the tax computation sheet forming part of the assessment order, the ld. AO had charged interest u/s 234C of the Act for Rs 5,65,652/-. This was charged by considering the assessed tax before allowing MAT Credit u/s 115JAA of the Act. The assessee carried this issue before the ld. CIT(A) but could not succeed. Hence, it is in appeal before us. ITA No.528/Del/2023 T.C. Healthcare Pvt. Ltd. vs. ACIT Page 3 of 4 4. As per section 234C of the Act, interest is charged on the shortfall in payment of ‘tax due on the returned income’. The expression ‘tax due on the returned income’ is defined in Explanation to Section 234C of the Act wherein it has been clearly stated that – ‘tax due on the returned income’ means the tax chargeable on the total income declared in the return of income furnished by the assessee, as reduced by the amount of – (i) Tax deducted / collected at source; (ia) any relief of tax allowed u/s 89 ; (ii) any relief of tax allowed u/s 90 on account of tax paid outside India; (iii) any relief of tax allowed u/s 90A on account of tax paid in a specified territory outside India referred to in that section ; (iv) any deduction from the Indian income-tax payable, allowed under section 91, on account of tax paid in a country outside India; and (v) any tax credit allowed to be set off in accordance with the provisions of section 115JAA or section 115JD. 5. Hence it could be safely concluded that the action of the lower authorities is in complete contravention of the aforesaid provisions of the Act and hence is to be declared as bad in law. Hence we direct the ld. AO to compute the interest chargeable , if any, u/s 234C of the Act, after ITA No.528/Del/2023 T.C. Healthcare Pvt. Ltd. vs. ACIT Page 4 of 4 reducing MAT credit u/s 115JAA of the Act. Accordingly, the grounds raised by the assessee are allowed for statistical purposes. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 29 th August, 2023. Sd/- Sd/- (ANUBHAV SHARMA) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated:29/08/2023 Pk/sps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI