In Dr. Prannoy Roy vs. CIT, the honorable High court of Delhi has held that “Assessee having paid the tax before the due date of filing of return which was not less than the tax payable on the returned income which has been accepted, interest under s. 234A is not chargeable for delayed filing of return” (2002) 254 ITR 755 (Del) : (2002) 172 CTR (Del) 465
In appeal, the honorable Supreme court has affirmed the above decision and entirely agreed with the finding recorded by the honorable High Court as also the interpretation of s. 234A of the Act.: (2009) 309 ITR 231: (2009) 222 CTR (SC) 6
Therefore, Interest would not be payable in a case where tax has been deposited prior to due date of filing of Income Tax Return even if the return of income is filed after the due date of furnishing such return.
CA Sujaya Anup Date