Another great relief came from the Madras High Court by putting an interim stay on penal interest under section 234A on assessee required to file their Audited Accounts and Income Tax return till the extended due date of 30th November, 2014.
We have earlier through our post http://www.ngoandtaxconsultant.in/2014/09/finally-cbdt-extends-due-date-for-itr.html#.VFcYbclh3IY updated our readers that the due date has been extended to 30th November, 2014 to file Income Tax returns subject to levy of Interest under section 234A.
Now Madras High court has granted an Interim stay on 234A interest also and said that "I-T returns shall be accepted by tax authorities without insisting upon any payment of interest under section 234A."
Earlier Anita Sumanth, advocate, representing the All India Federation of Tax Practitioners, and an individual petitioner, G Baskar, submitted to the Madras high court that the levy of interest under section 234A was unreasonable. If the penalty was levied, the purpose of extending the due date of filing the I-T return itself was defeated. She submitted that the Gujarat high court order relating to levy of interest under section 234A was only a suggestion or a concession, it was not an interpretation of law and it was opposed to statutory provisions.
This stay will bring a great relief to the assessee who are still required to pay their due Tax in the form of Self Assessment Tax. But still we would have to wait for final decision or Notification from CBDT. Till then Happy Tax Filing
We have earlier through our post http://www.ngoandtaxconsultant.in/2014/09/finally-cbdt-extends-due-date-for-itr.html#.VFcYbclh3IY updated our readers that the due date has been extended to 30th November, 2014 to file Income Tax returns subject to levy of Interest under section 234A.
Now Madras High court has granted an Interim stay on 234A interest also and said that "I-T returns shall be accepted by tax authorities without insisting upon any payment of interest under section 234A."
Earlier Anita Sumanth, advocate, representing the All India Federation of Tax Practitioners, and an individual petitioner, G Baskar, submitted to the Madras high court that the levy of interest under section 234A was unreasonable. If the penalty was levied, the purpose of extending the due date of filing the I-T return itself was defeated. She submitted that the Gujarat high court order relating to levy of interest under section 234A was only a suggestion or a concession, it was not an interpretation of law and it was opposed to statutory provisions.
This stay will bring a great relief to the assessee who are still required to pay their due Tax in the form of Self Assessment Tax. But still we would have to wait for final decision or Notification from CBDT. Till then Happy Tax Filing
No comments:
Post a Comment
Please add a comment in case of any query or if you like the post