Provisions of International Taxation for levying interest u/s 234A of the Income tax Act, 1961

This judgement concerns Hitachi High Technologies Singapore Pte Ltd's appeal against the levying of interest under Section 234A of the Income Tax Act, 1961. The Income Tax Appellate Tribunal noted that similar appeals for previous assessment years had been decided. While acknowledging that charging interest is mandatory, the Tribunal directed the Assessing Officer to calculate the interest in accordance with the law, considering the Tribunal's previous decisions. Consequently, the appeal was allowed for statistical purposes.

THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘D’ BENCH,
NEW DELHI [THROUGH VIDEO CONFERENCE]

BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND
 SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER

 ITA No. 2742/DEL/2016
[Assessment Year: 2006-07]

Hitachi High Technologies 
Singapore Pte Ltd
ASA & Associates, CAs
81/1, Third Floor, Adchini
Aurobindo Marg, New Delhi
PAN: AABCH 7717 H
 [Appellant] 

Vs. 

The A.D.I.T
 Circle – 1(2),
 International Taxation
 New Delhi

[Respondent]
 
Date of Hearing : 29.06.2021
 Date of Pronouncement : 29.06.2021

 Assessee by : Shri Anshul Sachar, CA
 Revenue by : Dr. Prabha Kant, CIT-DR

ORDER

PER N.K. BILLAIYA, ACCOUNTANT MEMBER,

This appeal by the assessee is preferred against the order of the ld. CIT(A) – 43, New Delhi dated 29.02.2016 pertaining to Assessment Year 2006-07. 

2. The solitary grievance of the assessee is that the ld. CIT(A) erred in upholding the decision of the ADIT, Circle- 1(2), International Taxation for levying interest u/s 234A of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short].

3. We find that this Tribunal vide a consolidated order for Assessment Years 2002-03 to 2007-08 in ITA Nos. 2683 to 2688/DEL/2015 has decided the appeals of the assessee. In our considered opinion charging of interest though mandatory, but consequential, we accordingly direct the Assessing Officer to charge interest as per provisions of law after considering the decision of the Tribunal [supra].

4. In the result, the appeal of the assessee in ITA No. 2742/DEL/2016 is allowed for statistical purposes.

The order is pronounced in the open court on 29.06.2021 in the presence of both the representatives.

 Sd/-                                                              Sd/-
[SUDHANSHU SRIVASTAVA]                    [N.K. BILLAIYA]
 JUDICIAL MEMBER                                  ACCOUNTANT MEMBER

Dated: 29th June, 2021 

Copy forwarded to:
1. Appellant
2. Respondent
3. CIT Asst. Registrar
4. CIT(A) ITAT, New Delhi
5. DR

Date of dictation
Date on which the typed draft is placed before the dictating Member
Date on which the typed draft is placed before the Other Member
Date on which the approved draft comes to the Sr.PS/PS
Date on which the fair order is placed before the Dictating Member for pronouncement
Date on which the fair order comes back to the Sr.PS/PS
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Date on which the file goes to the Bench Clerk
Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order
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