Clarification u/s234a

This query is : Resolved

radhika (Querist)
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25 June 2013 Dear sir,

I filed my income tax return by paying a tax of Rs.9000 for the AY 2010-11 . The return was filed within the due date (30-09-2010)since i am an director of a company. Now i want to revised my income tax return and net tax liability has been increased to Rs.180000 . should i need to pay Interest u/s 234A?

Ankit

Ankit (Expert)
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25 June 2013 Dear Radhika,

AY 2010-11 has already become time barred and cannot be revised now.

- Ankit

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 June 2013 Since the amount was payable on 30-09-2010, i.e. on the due date of return and tax is being paid later, interest U/s 234A, being compensatory in nature, is chargeable.
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So in my view , interest is required to be paid.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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25 June 2013 234A interest is levied for the return filed u/s 139(1) and 139(4). Revised return is filed u/s 139(5) hence 234A can't be levied.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 June 2013 Filing a return on or before the due date has got certain inherent advantages. " Save as otherwise" my opinion differs from the views expressed by Warrier Sir.
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When a return is filed U/s 139(1) then it is filed within the allowed period i.e. on or before the due date. As we know, question of charging interest U/s 234-A for timely filing of return does not arise.
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Consequently, interest U/s 234A is not required to be charged where return is filed U/s 139(1).
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Still section has a mention of Section 139(1).
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Section 139(5) requires a condition precedent.
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The condition is, return must be filed U/s 139(1) for revising it U/s 139(5)
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It is clear from the first few lines of Section 234A (1) that law covers delayed cases of Section 139(1) and in my view, revising a return on a later date from tax payment point of view, is a delayed return U/s 139(1).
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If the revenue will not charge interest in such cases, I would also like to file every return U/s 139(1) by paying Rs. 100/- or even not paying a single rupee as tax and later on revise the return after a certain period by taking substantial advantage of interest amount. Whether the said practice will be allowed by the department?
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Lastly, my earlier reply is based on the legislature's intentions and not merely on the words contained in subsection (1) of Section 234-A.
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Hope experts will agree with the above.
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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 June 2013 Bafna Ji

i) 7th para
Once, a revised return is filed, the originally filed return must be taken to have been withdrawn and substituted by the revised Return [Dhampur Sugar Mills Ltd v CIT (1973) 90 ITR 236 (All)].

ii) Rs. 100/- 8th para.
Original return should be revised only if there is a bonafide mistake in the original return. The benefit of section 139(5) cannot be claimed by a person who has made false return knowing it to be false.
Section 277 will prevent assesses to do so.

iii) I have hoisted the same observation on 15/12/2009 in https://www.caclubindia.com/experts/interest-u-s-234a-for-revised-return-296185.asp
but didn't get reply.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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27 June 2013 Sir, will you please guide us in the case of a return filed U/s 139(1) when interest U/s 234A can be charged ?

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