RAMAKRISHNA TARANGAMBAOI,HYDERABAD V. DCIT., CIRCLE-13(1), HYDERABAD

ITA 565/HYD/2025

AI Insights

The case involves an appeal by Shri Ramakrishna Tarangambaoi against the order of the CIT (A)-NFAC Delhi, concerning the assessment year 2022-23. The primary issue in the appeal was the incorrect computation of interest under section 234B of the Income Tax Act by the Assessing Officer, who calculated interest for the entire period despite the assessee having paid the full tax by July 1, 2023, through an updated return. The CIT (A) had initially dismissed the appeal due to a deficiency in the appeal fee, as the assessee paid only Rs.250 instead of the required Rs.1000. The Tribunal noted the procedural error and remitted the matter back to the CIT (A) for a decision on the interest computation, emphasizing the need to consider the tax payment made by the assessee on the specified date.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705621 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SRIKANTH SIRIGADI
• Section: 234B

Judgement Text

" ITA 565 of 2025 Ramakrishna Tarangambaoi Page 1 of 4 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ DB-B ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Madhusudan Sawdia, Accountant Member आ.अपी.सं /ITA No.565/Hyd/2025 (िनधाŊरण वषŊ/Assessment Year: 2022-23) Shri Ramakrishna Tarangambaoi Hyderabad PAN: AAWPT6919K Vs. Dy.CIT Circle 13 (1) Hyderabad (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: C.A. Srikanth Sirigadi राज̾ व Ȫारा/Revenue by:: Dr. Sachin Kumar, DR सुनवाई की तारीख/Date of hearing: 23/06/2025 घोषणा की तारीख/Pronouncement: 30/06/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal filed by the assessee is directed against the order dated 22/01/2025of the learned CIT (A)-NFAC Delhi, for the A.Y.202-23. 2. The assessee has raised the following grounds of appeal: ITA 565 of 2025 Ramakrishna Tarangambaoi Page 2 of 4 3. The only grievance raised by the assessee in this appeal is regarding wrong computation of interest u/s 234B of the Act. The learned AR of the assessee has submitted that the assessee has paid the entire tax by filing the updated return of income as on 1/7/2023 whereas the Assessing Officer has computed interest u/s 234B for the entire period. He has referred to page 8 of the order passed by the CPC u/s 143(1) of the Act and submitted that the CPC has mentioned in the order itself that the entire tax was paid by the assessee as on 1/7/2023. Thus, the learned AR has pleaded that the Assessing Officer may be directed to compute the interest u/s 234B of the Act only up to 30th June, 2023. He has further submitted that the interest u/s 234C is consequential. 4. On the other hand, the learned DR has submitted that the appeal of the assessee was dismissed by the learned CIT (A) due to deficiency in the appeal fee. The assessee has paid only ITA 565 of 2025 Ramakrishna Tarangambaoi Page 3 of 4 Rs.250/- as appeal fee as against Rs.1000/-. Therefore, the appeal of the assessee was dismissed in limine by the learned CIT (A) when it was found that the assessee has not paid the requisite appeal fee. 5. We have considered the rival contentions as well as the relevant material available on record. The learned CIT (A) while passing the impugned order has taken note of the fact that the assessee has not paid the requisite amount of appeal fee as the assessee has paid only Rs.250/- as appeal fee against Rs.1000/- applicable. Thus, the learned CIT (A) has dismissed the appeal of the assessee in limine due to deficient appeal fee. Since the issue involved in the appeal is only regarding the calculation of the interest u/s 234B up to the date of 1/7/2023 when the assessee has paid the entire tax while filing the updated return of income. This fact is manifest from the order u/s 143(1) of the Act itself. However, the computation of interest u/s 234B has been made without considering the tax liability of updated income as on 1/7/2023. Accordingly, we remit this issue to the record of the learned CIT (A) for deciding the same after considering the payment of the entire tax by the assessee as on 1/7/2023. Since the assessee has not paid the requisite appeal fee, accordingly, the assessee is directed to pay the deficient appeal fee of Rs.750/- within a period of one month from the date of this order. Accordingly, after the full payment of the appeal fee, the learned CIT (A), shall decide the issue of computation of interest u/s 234B ITA 565 of 2025 Ramakrishna Tarangambaoi Page 4 of 4 of the Act based on the fact that the assessee has paid the tax liability as on 1/7/2023. 6. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 30th June, 2025. Sd/- Sd/- (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 30th June, 2025 Vinodan/sps Copy to: S.No Addresses 1 Shri Ramakrishna Tarangambaoi, Rly. Quarter No.562/1 Railway Officers Colony, New Boiguda, New Boiguda, Secunderabad 500003 2 Dy.CIT Circle 13(1) Aayakar Bhavan, Basheerbagh, Opp: LB Stadium, Hyderabad 500004 3 Pr. CIT - Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "