The Income Tax Appellate Tribunal (ITAT), Jodhpur Bench, has recently, in an appeal filed before it, held that belated return cannot be submitted after the expiry of one year from the end of the Assessment Year (AY).
The aforesaid observation was made by the Jodhpur ITAT, when an appeal was preferred before it by the Assessee as against the order of the CIT(A), Ajmer dated 19-08-2019 for the assessment year 2010-11.
The solitary ground of the assessee’s appeal being that on the facts and in the circumstances of the case, the CIT(A) has erred in sustaining the order under Section 154, by which the AO has enhanced the interest chargeable under Section 234A, from Rs.8297/- to Rs.97493/- denying to follow the judgement of the Bombay High Court and the Jodhpur ITAT Bench referred by assessee, during the course of hearing, Shri Goutam Chand Baid, CA ,the AR of the assessee prayed that the lower authorities have erred in confirming the order passed by the AO under Section 153 of the Income Tax Act.
However, on the other hand, Shri S.M. Joshi, the JCIT-DR, strongly supported the orders of the authorities below.
Hearing the opposing contentions of either sides and thereby perusing the materials available on record, the Jodhpur ITAT observed:
“We have heard both the parties and perused the materials available on record. It is not imperative to repeat the facts of the case as the ld. CIT(A) has elaborately mentioned the case in his order. It is noted from the submission of the ld. AR of the assessee wherein he referred to Bombay High Court in the case of Priti Pithawala vs ITO (2003) 129 Taxman 79 wherein it is observed that a belated return cannot be submitted after the expiry of one year from the end of the assessment year.”
“If any assessment is made for the first-time under Section 147 then the assessee cannot be made to pay interest for the period during which it was not possible on the part of the assessee to file return i.e., after one year from the end of the assessment year till issuance of notice under Section 148 of the Act”, the ITAT Panel of Kul Bharat, the Judicial Member, and Manish Borad, the Accountant Member noted.
Thus, allowing the assessee’s appeal, the Jodhpur ITAT held:
“Hence, in this view of the matter, order passed by the AO under Section 154 is not in accordance with law and we do not concur with the findings of the ld. CIT(A). Thus, the appeal of the assessee is allowed.”
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