TaxTMI 
TaxTMI 
TaxTMI 
2021 (3) TMI 769
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....h is bad in law." 2. The hearing of the appeal was concluded through video conference in view of the prevailing situation of Covid-19 Pandemic. 3. The only ground raised by the assessee relates to challenging the order of the ld. CIT(A) in confirming the addition of Rs. 9,41,283/- of interest U/s 234A(1) of the Income Tax Act, 1961 (in short, the Act). The ld. AR appearing on behalf of the assessee has reiterated the same arguments as were raised before the ld. CIT(A) and also relied on the written submissions filed before the Bench which is reproduced below: "That the assessee did not file the return of income u/s 139(1) but filed her return of income for the first time in compliance to notice u/s 148 dated 20-06-2014 on dated 11-02-20....
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....owed by the number of High Courts and ITAT benches of India. Now for the sake of your convenience we are reproducing the sub section (1) and (3). 234A. (1) Where the return of income for any assessment year under sub-section (1) or sub-section (4) of section 139, or in response to a notice under sub-section (1) of section 142, is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,- (a) where the return is furnished after the due date, ending on the date of furnishing of the return; or (b) where no return has been furnished, ending on ....
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....immediately following the expiry of the time allowed as aforesaid, and,- (a) where the return is furnished after the expiry of the time aforesaid, ending on the date of furnishing the return; or (b) where no return has been furnished, ending on the date of completion of the reassessment or recomputation under section 147 or reassessment under section 153A, on the amount by which the tax on the total income determined on the basis of such reassessment or recomputation exceeds the tax on the total income determined under sub-section (1) of section 143 or on the basis of the earlier assessment aforesaid. From the reading of sub sec (3) the interest was rightly charged for 19 months and therefore the increase of interest u/s 234A by way o....
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....ation of dues, the Amending Act, 1987, has substituted the aforesaid provisions by a simple scheme of payment of mandatory interest for defaults mentioned therein. The aforesaid provisions provides that where a return of income is furnished after the due date or is not furnished, the assessee shall pay simple interest at the rate of one and one-fourth per cent for every month, or part of a month comprises in the period of default on the amount of tax on total income determined on regular assessment, as reduced by any advance tax paid or tax deducted at source. As such, the word "regular assessment" is used in the context of computation. It does not say that the order passed u/s 143(3)/141 of the Act shall be substituted by section 147 of th....
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....on of the record, it was found by the A.O. that interest U/s 234A(1) was charged at Rs. 2,66,950/- in ITNS 150 dated 31/03/2016 whereas it was to be charged at Rs. 9,41,283/- and thus considered the same to be mistake apparent from the record. The A.O. also issued notice to the assessee and provided opportunity of hearing but the assessee did not appear before the A.O.. Consequently, the order of rectification was passed by the A.O. thereby charging interest U/s 234A(1) of the Act at Rs. 9,41,283/- but at the same time, the total income of the assesse was kept same as was determined U/s 143(3)/147 of the Act. The ld. AR has vehemently opposed the passing of rectification order on the ground that there was no mistake apparent from the record....