2019 (6) TMI 1093

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....2. The order of ld. CIT(A) is bad-in-law and against the principle of natural justice. 3. The ld. CIT(A) erred in holding the excess interest levied u/s 234A by the Assessing Officer without appreciating that interest under section 234A could have been charged only till the time tax liability was outstanding. 4. The ld. CIT(A) erred in upholding the levy of excess interest under section 234B. 2. Brief facts of the case are that the assessee is a Private Limited Company engaged in the business of Multi Level Marketing. No return of income was filed by the assessee within the time prescribed under section 139 or 139(5). The Assessing Officer received information in Individual Transaction Statement (ITS) that assessee-company was in rece....

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....of hearing, the ld. AR of the assessee submits that he is not pressing the Ground No.1 & 2 of the appeal. Considering the submissions of assessee, the ld. AR of the assessee, the Ground No.1 & 2 of the appeal are dismissed as not pressed. 4. Ground no.3 relates to levy of interest under section 234A. The ld. AR of the assessee submits that due date of filing return of income for relevant Assessment Year was 15.10.2010. The assessee has paid tax on 24.03.2014, therefore, the assessee was liable to pay interest for 42 months only under section 234A. No interest under section 234A can be levied, if there was no outstanding tax due. The Assessing Officer charged the excess interest of Rs. 1,33,614/-, which is not in accordance with section 234....

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....assessing officer for subsequent assessment year. This fact is not disputed by the ld. DR for the revenue. The co-ordinate bench of Tribunal in Priti Prithwala vs. ITO (supra) on similar ground of appeal held that in section 234A, the word "regular assessment" are used in the context of computation. It does not show that the order passed under section 143(3)/144 shall be substituted by section 147. In term of section 234A(1)(a)(b), the period for which interest liability is calculated is the period between the date on which return was due to be filed and the ending on the date, the same is actually furnished and when no return is furnished, ending on the completion of assessment under section 144. Section 234A(1)(b) contemplates the situat....