TaxTMI 
TaxTMI 
2024 (8) TMI 740
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....e, bad-in-law and is passed in ignorance of the powers and obligations entrusted upon the appellate authority, and therefore, it deserves to be quashed 2. Under the facts and circumstances of the case, the Ld.CIT(A)-2 has grossly erred in law by condoning the actions of the AO who, while computing the interest due u/s. 234B, has not considered interest on Rs. 10.80 Crore from date of deposit till the date of assessment during the passing of appeal effect order dated 25.04.2018. The Ld. CIT(A) has grossly erred in confirming the aforementioned actions of the Ld. AO and therefore this impugned appellate order deserves to be quashed, and the interest due to the appellant be recalculated and duly disbursed. 3. Under the facts and circumstances of the case, the Ld. CIT(A)-2 has grossly erred in law by not giving interest due u/s. 244A on refund amount, as the same was not only miscalculated by the Ld. AO but the erroneous calculations were not shared by him, as well. Therefore, the Appellant humbly requests your good self to kindly allow the said interest u/s. 244A of the Act to the Appellant till date of refund and the AO is to be further directed to increase the refu....
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....; 21.03.2015 1,00,00,000 24.03.2015 2,50,00,000 25.03.2015 5,60,00,000 31.03.2015 1,20,00,000 March, 2015 10,80,00,000 12 12 1,29,60,000 Total 1,43,33,259 INCOME TAX COMPUTATION FORM TAX CALCULATION 1. Gross Tax 17,29,34,475 2. Rebate 3. Surcharge 86,46,724 4. Education Cess 54,47,436 5. Tax credit u/s 115JAA/15JD 6. Relief u/s 89(1) 90 / u/s 91 7. Net Tax 18,70,28,635 8. Interest u/s 234A 8a. Delay Period 9. Interest u/s 234B 2,17,15,825 10. Interest u/s 234C 88,69,100 11. Gross Demand 21,76,13,560 TAXES PAYMENT DETAILS 1. TDS/TCS 63,424 2. Advance Tax 60,00,000 3. Self Assessment Tax 20,31,62,001 4. Regular Assessment Tax 22,70,48,201 5. Amount already refunded 0 6. Total Tax paid 22,71,11,625 DIVIDEND DISTRIBUTI....
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....e raised again by the appellant in this ground of appeal. The appellant has raised a new issue of not giving interest on amount deposited by the appellant before passing of order u/s 143(3) of the Act and some collections made by way of adjustment of amount lying in PD Account and adjustment of refund. The appellant claimed that while computing interest following amount was not considered by the AO. Date Amount Nature of Payment 28.04.2014 59,70,290 Self-assessment Tax 16.03.2015 50,00,000 Self-Assessment tax 21.03.2015 1,00,00,000 Self-Assessment tax 24.03.2015 2,50,00,000 Self-Assessment tax 25.03.2015 5,60,00000 Self-Assessment tax 31.03.2015 1,20,00000 Self-Assessment tax 15.03.2016 1,11,56,690/- Demand Adjusted by PD account on 15.03.2016 31.01.2017 67,29,510/- Demand Adjusted out of refund proceed for AY 2012 - 2013 vide order 31.01.2017 This issue was not before the Hon'ble ITAT while passing order dated 08-12-2017 in ITA No. 436/Jodh/2017 and 08-02-2018 in ITA No. 535/Jodh/2017. In fact in first round of appeal this issue was not raised by the appellant at any stage. There....
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....that no interest shall be payable if the amount of refund is less than ten per cent of the tax. In the case of the appellant, the net tax was calculated as Rs. 18,70,28,635/- and the refund issued was Rs. 94,98,065/-. In view of the above fact, it is found that the assessing officer has correctly denied interest to the assessee u/s 244A. The appellant has stated that in the case of appellant, the amount of refund is more than 10% of Tax Payment. This contention of the appellant is based on the new issue raised by the appellant for the first time. The issue raised by the appellant is not found to be acceptable as it was not emanating from the order of the AO against which this appeal is filed. Therefore, as discussed in ground no. 2, this ground is also found to be unacceptable and rejected. This ground of appeal is treated as dismissed." 5. As both the grounds of the assessee was dismissed feeling dissatisfied from the order of the ld. CIT(A) the assessee has preferred the present appeal on the grounds as stated herein above in para 2 challenging the finding of the ld. CIT(A). In support of the grounds raised for interest computed u/s. 234B and interest receiva....
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....E 97 to 118 6. The Commissioner of Income-tax (Appeals) order dated 1-9-2017 Annexure-F 119 to 154 7. The Income-tax Appellate Tribunal order dated 8-12-2017 Annexure-G 155 to 170 8. The Commissioner of Income-tax (Appeals) passed rectification order dated 18-12-2017 Annexure-H 171 to 179 9. The Income-tax Appellate Tribunal order dated 8-2-2018 Annexure-I 180 to 195 10. Appeal effect order dated 25-4-2018 Annexure-J 196 to 199 11. Copies of request letter dated 19-3-2014 duly acknowledged by the learned Assessing Officer. Annexure-K 200 to 207 12. Interest under section 234B for the period from the date of request 19-3-2014 to the date of assessment 2-3-2016 comes out to Rs. 2,66,40,000 Annexure-L 208 13. Computation of interest under section 244A Annexure-M 209 14. Interest under section 244A of the Act to till 31-3-2023 Annexure-N 210 5.2 The ld. AR of the assessee in addition to the above submissions and chart so produced vehemently argued that the ld. CIT(A) has not considered the remand report of the ld. Assessing Officer which was called for from the ld. Assessin....
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.... to be charged u/s 234B is done below: Short Tax paid: 18,70,28,635(Net Tax) - 63,424(TDS) - 60,00,000(Advance Tax) : Rs. 18,09,65,211/- Interest on Rs. 18,09,65,211/-: Interest from 01.04.2013 to 31.03.2014 for 12 months : 18,09,65,211 12% : Rs. 2,17,15,825/- Therefore, total interest u/s 234B comes out to Rs. 2,17,15,825/- after giving credit of seized cash lying with the department from the first letter of authorization. In accordance with the calculations of interest done above, the A.O. too in the Order giving Appeal Effect passed on 25.04.2018 recomputed the interest u/s 234B at Rs. 2,17,15,825/- only and granted a refund of Rs. 94,98,065/-. Thus, there is no error in the re-computation of the interest charged done by the A.O. u/s 234B. However, prior to the assessment order passed u/s 143(3) r.w.s 153A on 02.03.2016, the assessee further deposited Rs. 10,80,00,000/- by way of challans in March, 2015 on the following occasions: 16.03.2015 - Rs. 50,00,000/- 21.03.2015 - Rs. 1,00,00,000/- 24.03.2015 - Rs. 2,5000,000/- 25.03.2015 - Rs. 5,60,00,000/- 31.03.2015 - Rs. 1,20,00,000/- Further....
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....er of the ld. CIT(A) but when the question raised by the bench the ld. DR did not object to the contention raised by the ld. AO in the remand report and prayed that the matter be decided considering the remand report of the ld. AO and the provision of section 234B of the Act. 7. We have heard the rival contentions, perused the material placed on record. The apple of discord in the present appeal is that whether the assessee is eligible to receive the credit of the amount of taxes paid after the end of the assessment year and before the completion of the final determination of the demand by the ld. AO while computing the interest payable by the assessee as per provision of section 234B of the Act or not. To have the better understanding of the issue it is imperative to consider the provisions of section 234B of the Act. Interest for defaults in payment of advance tax. 234B. (1) Subject to the other provisions of this section, where, in any financial year, an assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than ninety per cent of the ....
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.... assessment, tax is paid by the assessee under section 140A or otherwise,- (i) interest shall be calculated in accordance with the foregoing provisions of this section up to the date on which the tax is so paid, and reduced by the interest, if any, paid under section 140A towards the interest chargeable under this section; (ii) thereafter, interest shall be calculated at the rate aforesaid on the amount by which the tax so paid together with the advance tax paid falls short of the assessed tax. (2A) (a) Where an application under sub-section (1) of section 245C for any assessment year has been made, 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 1st day of April of such assessment year and ending on the date of making such application, on the additional amount of income-tax referred to in that sub-section; (b) where as a result of an order of the Settlement Commission under sub-section (4) of section 245D for any assessment year, the amount of total income disclosed in the application under sub-section (1) of section 245C is increased, th....
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....r the assessment year commencing on the 1st day of April, 1989 and subsequent assessment years. Thus, on careful perusal of the provision of section 234B of the Act bench observed that the assessee shall be eligible to receive the relief of interest before the date of determination of total income under subsection (1) of section 143 or completion of a regular assessment, tax is paid by the assessee under section 140A or otherwise and interest shall be calculated in accordance with the provisions of section 234B up to the date on which the tax is so paid, and reduced by the interest, if any, paid under section 140A towards the interest chargeable under this section and thereafter, interest shall be calculated at the rate aforesaid on the amount by which the tax so paid together with the advance tax paid falls short of the assessed tax. Thus, considering that specific provision of the Act and the specific acceptance of the fact by the ld. AO in the remand report that the assessee was not granted the credit of taxes while calculating the interest u/s. 234B of the Act and that too without referring to any adverse comment in the remand report. Therefore, considering the specific prov....