Tribunal upholds interest levy under Section 234A in rectification order for Assessment Years

The Tribunal dismissed all three appeals challenging the levy of interest under Section 234A in the rectification order passed under Section 154 for the mentioned Assessment Years. The Tribunal upheld the order of the Assessing Officer, citing that interest under Sections 234A, 234B, and 234C is mandatory and need not be specifically levied in the assessment order. The Tribunal distinguished previous case law cited by the appellant and found no reason to interfere with the impugned orders.

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Issues:
Levy of interest u/s. 234A in rectification order passed u/s 154.

Analysis:
1. The appellant challenged the levy of interest u/s. 234A in the rectification order passed u/s 154 for Assessment Years (AY) 2010-11, 2012-13 & 2013-14. The appellant contended that such a levy could not be made without specific direction. The Assessing Officer (AO) had rectified the demand and passed the order u/s 154 on 18.07.2018, recomputing the interest u/s. 234A to Rs.1,23,944/-. The appellant argued that interest u/s. 234A could not be levied without specific directions.

2. The Ld. CIT(A) noted the observations made by the AO regarding the delay in filing the Return of Income (ROI) and the subsequent levy of interest u/s. 234A. The Ld. CIT(A) distinguished the case law cited by the appellant and held that the circumstances of the present case were different from the case law cited by the appellant. The Ld. CIT(A) confirmed the levy of interest u/s. 234A based on the facts and circumstances of the case.

3. The Tribunal referred to the decision of the Hon'ble Supreme Court in CIT v. Anjum M.H. Ghaswala, where it was held that the interest under Sections 234A, 234B, and 234C is mandatory and need not be specifically levied in the assessment order. The Tribunal also distinguished the decisions cited by the appellant, stating that they were not applicable to the present case. The Tribunal upheld the order of the AO and dismissed all three appeals.

4. In conclusion, the Tribunal found no reason to interfere with the impugned orders and dismissed all the appeals related to the levy of interest u/s. 234A in the rectification order passed u/s 154 for the mentioned Assessment Years.

Judgment:
All three appeals challenging the levy of interest u/s. 234A in the rectification order passed u/s 154 were dismissed by the Tribunal on 17th August, 2022.

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