IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE MS PADMAVATHY S, AM &

SHRI RAJ KUMAR CHAUHAN, JM I.T.A. No. 4258/Mum/2025 (Assessment Year: 2024-25)

Godrej Projects North Star LLP, T h e D D I T , C e n t r a l ized

5^th Floor, Godrej One, Pirojshanagar, Processing Centre, Bengaluru.

Eastern Express Highway, Vikhroli (East), Mumbai-400079. V s . D C I T -41(2)(1), PAN: AAQFG9193E Kutilya Bhavan, G Block, Bandra Kurla Comlex, Bandra (E), Mumbai-400051.

Appellant) : Respondent Appellant /Assessee by : Shri Jeet Kamdar, AR Revenue / Respondent by : Shri Swapnil Choudhary, Sr. DR Date of Hearing : 21.08.2025 Date of Pronouncement : 10.09.2025 O R D E R Per Padmavathy S, AM:

This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/Addl./JCIT(A)-1, Vadodara [In short 'FAA'] passed under section 250 of the Income Tax Act, 1961 (the Act) dated 25.04.2025 for Assessment Year (AY) 2024-25. The assessee has raised the following the grounds of appeal:

“1. The Appellant LLP objects to the tax determined payable.

2. The Appellant LLP objects to the erroneous levy of interest under Section 2348 of the Act for the year under consideration. It is respectfully submitted that the Assessing Officer Centralized Processing Centre, Bengaluru has exceeded his/its jurisdiction and the erroneous levy of interest under Section

234B of the Act is unwarranted.

3. The Intimation issued under Section 143(1) of the Act is illegal and without jurisdiction as it raises a debatable issue.

4. The Appellant LLP denies the liability towards the erroneous excess levy of interest under Section 234B of the Act amounting to Rs. 1,51,086/- and submits that the same be deleted.

5. The Assessing Officer and the learned Commissioner of Income-tax (Appeals) erred in holding that self assessment tax paid on April 30, 2024 and October 28, 2024, is to be apportioned first towards interest. The Appellant LLP submits that the Assessing Officer and the learned Commissioner of Income Tax (Appeals) are misreading and misconstruing the provisions of Section 140A read with Section 234B of the Act. Having regard to the facts and circumstances of the case and the provision of law, the Appellant LLP submits that the Assessing Officer be directed to re-compute the said interest correctly.”

2. The assessee is a partnership firm and filed the return of income for AY 2024-25 on 29.10.2024 declaring a total income of Rs. 24,93,27,370/-. The return was processed under section 143(1) of the Act raising a demand of Rs. 1,50,630/-. The remand is arising due to the fact that the tax paid by the assessee after 01.04.2021 but before filing the return of income has been adjusted first towards the interest under section 234B and the balance against the tax payable as per the computation of income. Aggrieved the assessee filed further appeal before the CIT(A). The CIT(A) upheld the order under section 143(1) by holding that “6. Decision

6.1 In Ground No 1 to 4, the appellant has raised the issue of interest charged U/S 234B of the Act for Rs.3,22,400/-

6.1.1 The appellant submitted that interest under Section 2348 of the Act has been erroneously levied on the Appellant LLP at Rs.3,22,400/- as against the interest payable at Rs.1,71,314/- vide the aforesaid Intimation issued under Section 143(1) of the Act. It is the Department's contention that when self assessment tax is paid after the first day of April of the relevant Assessment Year, the payment is first to be appropriated towards interest and only thereafter towards regular tax. On the contrary, it is the Appellants' contention that payment made after 1st April of the Assessment Year is first to be treated as regular tax, provided there is no default in payment of interest under section 234A, 234B & 234C of the Act at the time of filing the Return of Income.

6.1.2 The contention raised by the appellant has been carefully examined in detail and is not found to be valid upon thorough consideration. A review of the