Interest u/s 264(C) to be levied on Return Income not Assessed Income: ITAT partly allows Appeal [Read Order]

The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, partly allowed an appeal recently and held that interest under Section 264(C) is to be levied on return income, not assessed income.

The assessee, Abhisekh Rajeshbhai, revised his Return of Income under Section 139(1) showing total income and deduction under Chapter VI-A. The assessee received a notice asking about the details about the donation made to a political party under Section 80GGC.

The Assessing Officer (AO), after following due process of law, disallowed the deductions under Sections 80GGC, 80D, 80DD, 80DDDB, 10(5). After the Commissioner of Income Tax (Appeals) [CIT(A)] confirmed the disallowances, the assessee-appellant presented his case before the ITAT.

The counsel for the appellant submitted that the assessee is entitled to claim a deduction up to Rs. 1 lakh for medical expenses as per Section 80(2). The counsel also submitted that the disallowance under Section 10(5) for travel concession was supported by Form No. 16 but the same was ignored by the lower authorities.

The tribunal noted that the assessee had not given the details of bank statements subsequent to the donations and the same has not been verified properly by the AO. Therefore, the tribunal remanded some issues back to the AO for proper verification.

The bench of Suchitra Kamble (Judicial Member) partly allowed the appeal as some of the grounds were accepted and the others were sent back in the form of remand for verification of documents and details. ITAT highlighted that the interest under Section 23(C0) was to be levied on the return income and not the assessed income.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates