2012 (7) TMI 1016 - AT - Income Tax

Tribunal upholds interest recalculated under section 234A following High Court ruling. Department's appeal dismissed for delay.

The Tribunal upheld the CIT(A)'s decision to recalculate interest u/s 234A based on the High Court's ruling. The department's belated appeal without ... - Issues involved: Appeal against order of CIT(A) regarding charging of interest u/s 234A and cross objection by assessee on limitation.Cross Objection by Assessee:The assessee raised grounds related to limitation and direction on charging of interest. The counsel for the assessee decided not to press the cross objection, leading to its dismissal.Departmental Appeal - Charging of Interest u/s 234A:The case involved a dispute regarding the period for which interest u/s 234A should be charged. The Assessing Officer initially charged interest from a different period than claimed by the assessee. The assessee cited a decision of the Hon'ble Bombay High Court to support their contention. The Assessing Officer rectified the mistake u/s 154 of the Income Tax Act, which was challenged by the assessee before the CIT(A).Arguments and Decision:The assessee argued that interest should be charged for a specific period based on the High Court's decision. The CIT(A) upheld the assessee's claim and directed the Assessing Officer to recalculate the interest for twenty months. The department appealed against this decision, but the Tribunal found no valid ground to interfere. The Tribunal noted the department's appeal was belated by 435 days without any application for condonation of delay, leading to its dismissal. Therefore, both the department's appeal and the assessee's cross objection were dismissed.Conclusion:The Tribunal upheld the CIT(A)'s decision on recalculating interest u/s 234A based on the High Court's ruling. The department's belated appeal without seeking condonation of delay resulted in its dismissal, along with the cross objection by the assessee.