https://www.taxtmi.com/caselaws?id=447625 ITAT Hyderabad held that when computing interest under section 234A, the quantification date for determining if interest liability exceeds Rs. 1 lakh should be the actual tax payment date, not the return filing date. The assessee paid taxes on 27/09/2021 when interest liability was below Rs. 1 lakh, making them eligible for extended due date benefits. Following Supreme Court precedent in Pranoy Roy case, interest under section 234A compensates revenue for delayed tax payment, not delayed return filing. The tribunal directed the AO to verify if taxes paid covered interest liability up to payment date and delete any additional interest if confirmed. Appeal allowed. en-us Tue, 26 Dec 2023 00:00:00 +0530 Mon, 01 Jan 2024 07:15:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447625 ITAT Hyderabad held that when computing interest under section 234A, the quantification date for determining if interest liability exceeds Rs. 1 lakh should be the actual tax payment date, not the return filing date. The assessee paid taxes on 27/09/2021 when interest liability was below Rs. 1 lakh, making them eligible for extended due date benefits. Following Supreme Court precedent in Pranoy Roy case, interest under section 234A compensates revenue for delayed tax payment, not delayed return filing. The tribunal directed the AO to verify if taxes paid covered interest liability up to payment date and delete any additional interest if confirmed. Appeal allowed. Case-Laws Income Tax Tue, 26 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447625