2026 (1) TMI 925

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....of the Income Tax Act. 2. The brief facts of the case are that the assessee had filed his return of income for A.Y. 2017-18 on 29.11.2017 declaring total income of Rs. 27,35,910/-. A search & seizure action was conducted in the case of Avani Group of Vadodara on 23.01.2020 in the course of which certain incriminating documents pertaining to the assessee were found and seized. The Assessing Officer had initiated proceeding u/s 153C of the Act on 29.04.2021 on the basis of those incriminating documents and the assessee had filed his return of income u/s 153C on 08.05.2021 showing total income of Rs. 27,35,910/-. The assessment was completed assessment u/s 153C of the Act on 26.03.2022 at total income of Rs. 58,93,410/-. The Assessing Offic....

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....ri Aseem Thakkar, the Ld. A.R of the assessee submitted that the interest u/s 234A of the Act is leviable for delay in filing of return of income. He explained that the A.O. had issued notice u/s 153C of the Act on 29.04.2021 allowing 30 days' time to the assessee to file the return. The assessee had filed his return u/s 153C on 08.05.2021, which was well within 30 days' time period as allowed to him. Under the circumstances, there was no delay in filing the return u/s 153C of the Act and, therefore, no interest u/s 234A of the Act was chargeable. 6. Per contra, Shri. Ashok Kumar Suthar, Ld. Sr. D. R. supported the order of the lower authorities. 7. We have considered the rival submissions. In the present case the interest u/s 234A of....

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.... (b) where no return has been furnished, ending on the date of completion of the assessment under section 144, on the amount of the tax on the total income as determined under sub-section (1) of section 143, and where a regular assessment is made, on the amount of the tax on the total income determined under regular assessment, as reduced by the amount of,- (i) advance tax, if any, paid; (ii) any tax deducted or collected at source; (iia) any relief of tax allowed under section 89; (iii) any relief of tax allowed under section 90 on account of tax paid in a country outside India; (iv) any relief of tax allowed under section 90A on account of tax paid in a specified territory outside ....

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.... return. In the present case no regular assessment u/s 143(3)/144 was made. However, the Explanation-3 to section 234A stipulates that where assessment is made for the first time u/s 147 or u/s 153A of the Act, the assessment so made shall be regarded as regular assessment for the purpose of this section. In the present case, the assessment was made for the first time u/s 153C of the Act. As per provision of section 153C of the Act, the AO after recording the satisfaction u/s 153C of the Act is required to assess or reassess the income of the 'other person' in accordance with the provisions of section 153A of the Act. Therefore, the assessment in pursuance to notice u/s 153C of the Act will be deemed to be completed u/s 153A of the Act. Thi....