IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER Assessment year : 2023-24 Shri Kiran Baburao Jadhav DCIT, Swargate, Pune Flat No.4, Shubhamkar Apts, Lane Vs.

No.14, Bhandarkar Road, Pune – 411004 PAN: ADDPJ5634M (Appellant) (Respondent)

Assessee by : Shri Gajanan N Kondhare Department by : Shri Ramnath P Murkunde Date of hearing : 28-07-2025 Date of pronouncement : 11-08-2025

O R D E R

PER R.K. PANDA, VP:

This appeal filed by the assessee is directed against the order dated

30.09.2024 of the Ld. Addl. / JCIT(A)-3, Delhi relating to assessment year 2015-

16.

2. Facts of the case, in brief, are that the assessee is an individual and derives income from salary, house property, capital gain and income from other sources. He filed his return of income on 31.10.2023 declaring total income of Rs.4,14,23,740/-. Subsequently, the assessee revised his return of income on 31.01.2024 by declaring additional income of Rs.97,06,000/- and paid tax on the above amounting to Rs.33,66,040/-. The facts leading to the above additional income are that during the relevant financial year the assessee has sold shares in unlisted company for which the Fair Market Value (FMV) is more than the sale consideration by Rs.97,06,000/-. The CPC vide intimation dated 11.12.2024 raised an additional demand of Rs.3,20,650/- on account of interest u/s 234B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) (interest on Rs.2,56,520/- + 25% additional tax thereon of Rs.64,130/-).

3. Before the Ld. Addl. / JCIT(A) it was argued that such computation of interest u/s 234B of the Act by the CPC till date of intimation i.e. upto the month of December, 2024 without considering the self assessment tax of Rs.33,66,040/- paid while filing updated return on 30.01.2024. It was accordingly argued that such additional demand raised by the CPC should be deleted.

4. However, the Ld. Addl. / JCIT(A) was not satisfied with the arguments advanced by the assessee and dismissed the appeal by observing as under:

“5. Discussion & decision- The intimation u/s 143(1) and submission along with documents submitted by appellant are carefully examined. The appeal has been filed against the order u/s 143(1) dated 11.12.2024 in respect of updated return filed u/s 139(8A) dated 31.01.2024 of IT Act. In the said intimation the tax liability of appellant was determined at Rs.3,20,650/- which consist of excess tax liability u/s 234B at Rs.2,56,520/- and additional tax u/s 140B for the same amounting Rs.64,130/-.

The submissions of appellant are that he had paid the additional tax along with interest at the time of filing updated ITR in Jan, 2024. The appellant also cited provision of act that credit of tax payment made u/s 140B should be reduced while calculating interest u/s 234B.

The submissions of appellant are considered and not found tenable on account of following legal position.

The provision of act for charging interest u/s 234B is reproduced as under-

234B. (1) Subject to the other provisions of this section, where, in any financial year, an assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period from the 1st day of April next following such financial year to the date of determination of total income under sub-section (1) of section 143 and where a regular assessment is made, to the date of such regular assessment, on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax.

Explanation 1. - in this section, "assessed tax" means the tax on the total income determined under sub-section (1) of section 143 and whe