M/s. Atlantic Realtor Private Ltd., New Delhi V. DCIT, New Delhi

ITA 5730/DEL/2014

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5581 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 22-10-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MRS AASTHA LAKSHMI
• Assessee Lawyers: ABHINAV GUPTA
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: A , NEW DELHI BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SMT. BEENA A PILLAI, JUDICIAL MEMBER ITA NO. 5730 / DEL/201 4 AY: 201 1 - 12 ATLANTIC REALTOR PRIVATE LTD. A - 185, SURAJ MAL VIHAR NEW DELHI 110 092 PAN: AADFA2989D VS . DCIT, CIRCLE 2(1) NEW DELHI (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. ABHINAV GUPTA, CA. DEPARTMENT BY : MRS. AASTHA LAKSHMI, SR. D.R. DATE OF HEARING : 0 5 / 03/ 2019 DATE OF PRONOUNCEMENT : 03 / 0 6 / 2019 ORDER PER BEENA A PILLAI, JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST ORDER DATED 13/07/14 PASSED BY LDCIT(A) - 5, NEW DELHI FOR A SSESSMENT Y EAR 2011 - 12 ON FOLLOWING GROUNDS OF APPEAL: 1. THE CIT(A) ERRED IN LAW AND ON FACTS IN NOT DELETING THE EXCESS INTEREST OF RS.7,63,608/ - CHARGED U/S 234A AND RS.2,09,339/ - U/S 234B IN ASSESSMENT ORDER FOR A.Y. 2011 - 12 DESPITE THE FACT THAT THE APPELLANT HAS DEPOSITED A SUM OF RS.1,29,98,110/ - ON 31/03/2012 ITA NO.5730/DEL/2014 AY: 2011 - 12 ATLANTIC REALTOR PRIVATE LTD. VS. DCIT 2 I.E. BEFORE FILING OF RETURN. THUS, ORDER OF THE LD.CIT(A) PASSED MERELY ON SURMISE S AND CONJECTURES SHOULD BE REVERSED. 2. THE APPELLANT CRAVES LEAVE TO ADD, SUBSTITUTE, MODIFY, DELETE OR AMEND ALL OR ANY GROUND OF APPEAL EITHER BEFORE OR AT TIME OF HEARING. 2. BRIEF FACTS OF CASE ARE AS UNDER . A SSESSEE FOR YEAR UNDER CONSIDERATION F ILED ITS RETURN OF INCOME BELATEDLY ON 04/10/12 BY DECLARING INCOME OF RS. 3,28,40,260/ - . A SUM OF RS. 1,29,98,110/ - WAS PAID ON 31/03/12 UNDER SECTION 140 A OF THE INCOME TAX ACT, 1961 (THE ACT) I.E. 6 MONTHS BEFORE DATE OF FILING OF WRIT. 3. C ASE WAS PI CKED UP FOR SCRUTINY UNDER SECTION 143(2) ON 12/08/13 AND ASSESSED AT INCOME AMOUNTING TO RS.3,28,40,260/ - ON 18/02/14. LD. AO COMPUTED INTEREST OF RS. 14,18,131/ - UNDER SECTION 234A AND RS. 15,82,445/ - UNDER SECTION 23 4B ON ENTIRE TAX AMOUNT UP TO DATE OF FILING OF RETURN I.E. 04/10/12. 4. AGGRIEVED BY ORDER OF LD.AO ASSESSEE PREFERRED APPEAL BEFORE LD. CIT (A) WHEREIN HE RA ISED A PLEA THAT LD. AO DID NOT GIVE CREDIT OF TAXES AND INTEREST AMOUNTING TO RS.1,29,98,110/ - PAID BY ASSESSEE ON 31/03 /12. AFTER GOING THROUGH LAW APPLICABLE TO PRESENT FACTS OF CASE LD.CIT(A) DIRECTED LD. AO TO RE - COMPUTE INTEREST IN ACCORDANCE WITH PROVISIONS OF SECTION 234A AND 234B. 5. AGGRIEVED BY ORDER OF LD. CIT (A) ASSESSEE IS IN APPEAL BEFORE US NOW. 6. LD. AR S UBMITTED THAT LD. AO HAS NOT COMPUTED INTEREST UNDER SECTION 234A AND 234B TO PRESENT FACTS OF CASE. HE ITA NO.5730/DEL/2014 AY: 2011 - 12 ATLANTIC REALTOR PRIVATE LTD. VS. DCIT 3 SUBMITTED THAT LD.AO FAILED TO GIVE CREDIT TO TAXES PAID BY ASSESSEE ON 31/03/12 I.E. PRIOR TO DATE OF FILING OF RETURN. 7 . LD. SR. DR PLACED RELIANC E UPON ORDER PASSED BY LD.CIT(A) WHEREIN A DIRECTION HAS ALREADY BEEN GIVEN TO LD. AO FOR RE - COMPUTING INTEREST IN ACCORDANCE WITH PROVISIONS OF SECTION 234A AND 234B OF THE A CT. 8. WE HAVE PERUSED SUBMISSIONS ADVANCED BY BOTH SIDES IN LIGHT OF RECOR DS PLACED BEFORE US. 9. THE ISSUE RELATES TO LEVY OF INTEREST UNDER SECTION 234A & B OF THE A CT. THE DUE DATE OF FILING RETURN OF INCOME FOR YEAR UNDER CONSIDERATION WAS 31/07/11. LD.AO COMPUTED INTEREST UNDER SECTION 23 4 FOR LATE FILING OF RETURN. L D.AR PLACED RELIANCE UPON DECISION OF HON RABLE DELHI HIGH COURT IN CASE OF DR PRANNOY ROY VS CIT REPORTED IN 121 TAXMAN 314 WHEREIN HONBLE C OURT HELD THAT INTEREST UNDER S ECTION 23 4A IS PAYABLE IN A CASE WHERE TAX HAS NOT BEEN DEPOSITED PRIOR TO DUE DATE OF FILING OF RETURN . IN PRESENT CASE ASSESSEE FAILED TO DEPOSIT SELF - ASSESSMENT TAX BEFORE DUE DATE OF FILING OF RETURN. HOWEVER, IT IS OBSERVED THAT ASSESSEE PAID SELF - ASSESSMENT TAX UNDER SECTION 140A ON 31/03/12 AND RETURN WAS FILED ON 4/10/ 2012. TH US IN OUR CONSIDERED OPINION AS PER PROVISIONS OF THE A CT , INTEREST UNDER SECTION 234A & B HAS TO BE COMPUTED AFTER REDUCING AMOUNT OF TAX PAID BY ASSESSEE IN THE FORM OF ADVANCE TAX OR TAX DEDUCTED OR COLLECTED AT SOURCE ETC. 9.1 . WE ARE, THEREFORE , OF CONSIDERED OPINION THAT INTEREST UNDER SECTION 234 A & B SHALL BE COMPUTED AFTER REDUCING A SUM OF RS.1,29,98,110/ - PAID BY ASSESSEE ON 31/03/12. ITA NO.5730/DEL/2014 AY: 2011 - 12 ATLANTIC REALTOR PRIVATE LTD. VS. DCIT 4 9.2 . ON PERUSAL OF ORDER PASSED BY LD. CIT (A) A SIMILAR DIRECTION HAS BEEN ISSUED BY LD.CIT(A) TO RE - COMPUTE INTEREST IN ACCORDANCE WITH PROVISIONS OF SECTION 234 A AND 234 B. WE DO NOT FIND ANY INFIRMITY IN SUCH DIRECTION ISSUED BY LD.CIT(A). WE UPHOLD THE SAME W ITH A SPECIFIC DIRECTION TO LD. AO TO COMPUTE INTEREST AFTER REDUCING AMOUNT OF TAX PAID BY A SSESSEE ON 31/03/12. 10. ACCORDINGLY THE APPEAL FILED BY ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON ./0 6 /2019. S D / - S D / - ( N.S. SAINI) (BEENA A PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DT. 0 3 R D JUNE , 2019 GMV COPY FORWARDED TO: - APPELLANT RESPONDENT CIT CIT(A) DR, ITAT - TRUE COPY - BY ORDER, ASSISTANT REGISTRAR ITAT DELHI BENCHES ITA NO.5730/DEL/2014 AY: 2011 - 12 ATLANTIC REALTOR PRIVATE LTD. VS. DCIT 5 DATE DRAFT DICTATED ON 07/05/19 DRAFT PLACED BEFORE AUTHOR 07/05/19 3 1 / 0 5 / 1 9 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS KEPT FOR PRONOUNCEMENT ON & ORDER UPLOADED ON : 0 3 / 0 6 / 1 9 FILE SENT TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.