Section 234A – When the taxes have been deposited before the original due date of filing of return of income even though the return has been filed within the extended due date so notified by the CBDT, there would not be any levy of interest u/s. 234A where the returned income has been accepted or where the taxes deposited are higher than the taxes finally determined by the AO.

22.  [2018] 196 TTJ 768 (JP – Trib.) Rajasthan State
Mines & Minerals Ltd vs. ACIT ITA No.:  47/Jp/2018 
A.Y.:  2014-15.Dated: 24^th October, 2018

Section
234A – When the taxes have been deposited before the original due date of
filing of return of income even though the return has been filed within the
extended due date so notified by the CBDT, there would not be any levy of
interest u/s. 234A where the returned income has been accepted or where the
taxes deposited are higher than the taxes finally determined by the AO.

FACTS

The
due date of filing of return of income for A.Y.2014-15 was extended by the CBDT
vide its order u/s. 119 from 30.9.2014 to 30.11.2014. The assessee filed the
return on 28.11.2014. The assessee had paid self-assessment tax well before the
original due date of filing return of income. The AO while working out the
interest u/s. 234A had not given credit of self-assessment tax paid by the assessee.
Aggrieved by the assessment order, the assessee preferred an appeal to the
CIT(A). The CIT(A) confirmed the same.

HELD

The
Tribunal followed the ratio of the Hon’ble Supreme Court decision in the case
of CIT vs. Pranoy Roy & Anr. (2009) 222 CTR (SC) 6 wherein it was
held that the interest u/s. 234A of the Act on default in furnishing return of
income shall be payable only on the amount of tax that has not been deposited
before the due date of filing of the IT return for the relevant assessment
year. The Tribunal relying upon the judgement of Hon’ble Supreme Court, held
that where the taxes deposited before filing the return of income were more
than the taxes finally determined on regular assessment, the interest u/s. 234A
was held not leviable.