ZENOBIA PHIROZE IRANI,CHENNAI V. ITO, NCW-3(3), CHENNAI

ITA 2913/CHNY/2024

AI Insights

The case involves an appeal by Zenobia Phiroze Irani against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Center, Delhi, concerning the assessment year 2023-24. The primary issues in the appeal were the levy of interest under section 234C for non-payment of advance tax and the levy of penalty under section 234F for belated filing of the return of income. The assessee contested that the advance tax paid was nearly in compliance with the liability, and the return was filed just a day late. The Tribunal found that there was an apparent inadvertent omission by the lower authorities in appreciating the assessee's submissions and directed a re-examination of the case by the AO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298657 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2023-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMANTHA MULLAMUDI
• Assessee Lawyers: S. SRIDHAR
• Keywords: Set aside; Opportunity of being heard
• Section: 250

Judgement Text

"आयकर अपीलीय अधिकरण, ‘ए’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI माननीय श्री मनु क ुमार धिरर ,न्याधयक सदस्य एवं माननीय श्री अमिताभ शुक्ला, लेखा सदस्य क े सिक्ष BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2913/Chny/2024, Assessment Years: 2023-24 Zenobia Phiroze Irani, New No.7, Muthiah Street, Teynampet, Chennai-600 086. [PAN: AAAPI1704R] Income Tax Officer, Non-Corporate, Ward-3(3), Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri S.Sridhar, Advocate प्रत्यर्थी की ओर से /Revenue by : Smt.Samantha Mullamudi, Addl.CIT सुनवाई की तारीख/Date of Hearing : 27.03.2025 घोषणा की तारीख /Date of Pronouncement : 23.04.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / NFAC / S / 250 / 2024-25 / 1069238899(1) dated 28.09.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2023-24. 2.0 At the outset, Ld. Counsel for the assessee informed that the twin small issues it is contesting in this appeal are regarding the levy of interest under section 234C of Rs.4,04,826/- for non-payment of advance tax as also the levy of penalty under section 234F of Rs.5000/- for ITA No.2913 /Chny/2024 Page - 2 - of 3 belated filing of the return of income. It has been submitted that the revenue authorities have inadvertently omitted to note that no such mistake was committed by the assessee. The Ld. Counsel informed that the advance tax of rupees Rs. 4,34,00,000/- was paid by it on different dates as against total liability of Rs.4,35,39,780/-. Thus it was submitted that at best only an interest u/s 234C of Rs.9037/- was liable to be levied on advance tax shortfall of Rs.1,39,780/-. As regards, penalty u/s 234F it was submitted that the return of income was filed on 28.07.2023 as against compliance of 31.07.2023. In support of its contentions, the assessee has filed a paper book. The assessee accordingly requested that the matter may be considered for restoration to the Ld. AO for giving it the requested relief upon verification of its records. The Ld. DR did not pose any serious objections to the proposal of the assessee. 3.0 We have heard rival submissions in the light of material available on records. Upon consideration of the facts of the case, we are of the view that there appears to be a case of apparent inadvertent omission to correctly appreciate the submissions of the assessee by the lower authorities. The details filed before us allude that due compliance was made towards timelines while making payment of advance taxes and filing of ROI. Be that as it may be we are of the considered view that ends of justice would be met if the matter is remitted back to the Ld.AO for Limited verification of the documents produced by the assessee and ITA No.2913 /Chny/2024 Page - 3 - of 3 then to take a decision in accordance with law. Accordingly, the order of lower authorities is set aside and the Ld.AO is directed to verify the documents submitted by assessee and decide the matter in accordance with law. While doing so, the Ld.AO shall give due opportunity of being heard to the assessee. Accordingly, all the grounds of appeal raised by the assessee are allowed for statistical purposes. 4.0 In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 23rd , April-2025 at Chennai. Sd/- (मनु क ुमार धिरर) (MANU KUMAR GIRI) न्याधयक सदस्य / Judicial Member Sd/- (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: 23rd , April-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "