Hon’ble ITAT held that interest under section 234C of the IT Act, 1961 is to be levied on the returned income and not on the assessed income. The relevant para of order dated 31-05-2023:
Interest under section 234C (ground No.11)
10. In the above ground, assessee challenges the AO’s action in levying interest under section 234C of the Act on the assessed income instead of the returned income.
11. We have heard the rival submissions and perused the material on record. The Mumbai Bench of the Tribunal in the case of Aishwarya K. Rai Vs. DCIT [2009] (1) TMI 860 – ITAT, Mumbai, had held that interest under section 234C of the Act is to be levied on the returned income and not on the assessed income. In view of the aforesaid order of the Tribunal, we direct the AO to restrict the levy of interest under section 234C of the Act to the returned income instead of the assessed income. It is ordered accordingly.
12. In the result, ground No.11 is allowed.
13. In the result, appeal of the assessee is partly allowed.
