UMESHBHAI CHATURBHAI PATEL (LEGAL HEIR OF LATE INDUBEN CHATURBHAI PATEL),VADODARA, GUJARAT V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2(1)(1), VADODARA

ITA 2116/AHD/2024

AI Insights

The case revolves around an appeal by Umeshbhai Chaturbhai Patel against the order of the National Faceless Appeal Centre (NFAC), which arose from an assessment order under section 154 of the Income Tax Act, 1961, for the Assessment Year 2013-14. The primary contention was regarding the charging of interest under section 234A of the Income Tax Act due to late filing of the income tax return. The assessee had filed the return post the due date but had already deposited the due taxes along with interest. The Assessing Officer, however, charged additional interest from the date of filing the return in response to a notice under section 148 of the Act. The Tribunal found this imposition of further interest unjustified, leading to the allowance of the assessee's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35025 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVINDRA
• Section: 148; 154; 139

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before Shri Sanjay Garg, Judicial Member And Shri Makarand V. Mahadeokar , Accountant Member Umeshbhai Chaturbhai Patel (Legal Heir of Late Induben Chaturbhai Patel), C/73, Induvila, Sairupa Soc, Vibhag-I, Opp. Anand Nagar, Karelibaug, Vadodara PAN: BCYPP6744H (Appellant) Vs The Deputy Commissioner of Income Tax, Circle-2(1)(1), Vadodara (Respondent) Assessee by: None Revenue by: Shri Ravindra, Sr. D.R. Date of hearing : 18-03-2025 Date of pronouncement : 26-03-2025 आदेश/ORDER Per Sanjay Garg, Judicial Member: The present appeal has been filed by the Assessee against the order passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)’] dated 10.10.2024 arising out of the assessment order passed u/s. 154 of the Income Tax Act, 1961 (here-in-after referred to as “the Act”) relevant to the Assessment Year 2013-14. ITA No. 2116/Ahd/2024 Assessment Year 2013-14 I.T.A No. 2116/Ahd/2024 Umeshbhai Chaturbhai Patel Legal Heir of Late Induben Chaturbhai Patel, A.Y. 2013-14 2 2. No one has put in appearance on behalf of the assessee. Therefore, we proceed to decide this appeal after hearing ld. Departmental Representative and going through the records. 3. The sole issue involved in this appeal is relating to the charging of interest u/s. 234A of the Income Tax Act. 4. The brief facts of the case are that the assessee did not file his return of income u/s. 139 of the Income Tax Act. However, after expiry of the prescribed period for filing of the return, the assessee filed the return of income and deposited the due taxes along with the interest etc. Thereafter, the Assessing Officer issued notice u/s. 148 of the Income Tax Act for reopening of the assessment. In response to the notice issued by the Assessing Officer u/s. 148 of the Act, the assessee again filed the return of income offering the same income as was filed in earlier return of income. The Assessing Officer though accepted the returned income but, charged the interest u/s. 234A of the Income Tax Act from the date of filing of the return of income in response to the notice u/s. 148 of the Income Tax Act. The claim of the assessee is that the interest should not be levied from the date the assessee deposited the due taxes along with interest, though, the return of income was filed by the assessee belatedly. 5. After considering the above facts and circumstances, we are of the view that once the assessee had deposited the due taxes and interest, there was no question of charging of further interest on the same amount by the Department. The interest, I.T.A No. 2116/Ahd/2024 Umeshbhai Chaturbhai Patel Legal Heir of Late Induben Chaturbhai Patel, A.Y. 2013-14 3 if any, is to be charged for the period during which the due taxes were required to be deposited but not deposited. Once, the assessee deposits the due taxes and interest, there is no question of charging of interest on the said amount. In view of this, the action of the Assessing Officer in charging the interest for the period after the deposit of due taxes is not justified. Therefore, the addition made by the Assessing Officer is ordered to be deleted. 6. In the result, the appeal of the assessee stands allowed. Order pronounced in the open court on 26-03-2025 Sd/- Sd/- (Makarand V. Mahadeokar) (Sanjay Garg) Accountant Member Judicial Member Ahmedabad : Dated 26/03/2025 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद "