Suchitra Kamble ORDER
Suchitra Kamble, Member (J)
1. The appeal filed by the assessee is against the order passed by the Ld. CIT(Appeals), National Faceless Appeal Centre (in short "NFAC"), Delhi on 31.10.2022 for A.Y. 2015-16.
2. The grounds of appeal raised by the assessee are as under:
"1.1 The order passed u/s 250 dated 31-10-2022 for A.Y. 2015-16 by CIT(A) - NFAC, Delhi upholding the invocation of provisions of S.234A and imposing interest of Rs.4,55,538/- towards late filing of return of income is wholly illegal, unlawful and against the principles of natural justice.
1.2 The Ld. CIT(A) has grievously erred in law and on facts in invoking provisions of S.234A and imposed interest of Rs.4,55,538/- towards late filing of return of income without providing an opportunity of hearing so that there is gross violation of principles of natural justice. There is no mention in the assessment order nor in any of the notices/show cause notice regarding charging of interest u/s 234A.
2.1 The Ld. CIT(A) has grievously erred in law and/or on facts in invoking provisions of S.234A of the Act.
2.2 The Ld. CIT(A) has grievously erred in law and/or on facts in invoking provisions of S.234 which has no applicability to the facts of this case in as much as that this provisions is workable only towards returns filed u/s 139(1) whereas the impugned returned was filed in response to 148.
3.1 Without prejudice to the above and in alternative, the Ld CIT(A) has grievously erred in law and/or on facts in not appreciating that appellant cannot be charged interest for the period for which he cannot file any ROI i.e. after the expiry of due date u/s 139(1) to notice u/s 148 and not for the entire period.
3.2 The Ld CIT(A) ought to have appreciated that there is no mechanism under the law which permits appellant to file ROI after due date prescribed u/s 139(1) so that it cannot be asked to pay interest for that period.
It is, therefore, prayed that interest u/s 234A of Rs.4,55,538/- upheld by Ld CIT(A) deserved to be deleted."
3. The assessee is an individual and derives income mainly from interest and other sources. The return of income under Section 139 was not filed for the relevant year under bonafide belief that since the assessee has not having any other income from business or profession the assessee does not require to file any return of income. The information was gathered from ITBA System of Department for F.Y. 2014-15 where it was observed that the assessee purchased an immovable property for an amount of Rs. 4,78,71,000/- and received interest of Rs. 25,76,203/-. The assessee was reopened under Section 147 of the Act by issuing notice under Section 148 of the Act on 31.03.2021 after taking necessary approval from the competent authority as per provision of Section 151 of the Act and served on the assessee through her registered e- mail, requesting her to file return in the prescribed form for the said Assessment Year. In response the assessee filed here return for A.Y. 2015-16 on 01.05.2021 disclosing total income of Rs. 35,53,830/-. Subsequently, notices under Section 143(2) and 142(1) of the Act alongwith questionnaire were issued and served on the assessee at his registered e-mail address for upon which the assessee filed various documents and responses. The assessee revealed that during F.Y. 2014-15 the source of assessee's income was family pension and interest income as the assessee received family pension amounting to Rs. 7,91,828/- interest on FDs of Rs. 25,76,205/- and interest on Savings account of Rs. 2,10,801/-. The Assessing Officer observed that the assessee had taxable income during F.Y. 2014-15 and did not file her return of income disobeying the provision of Section 139(1) of the Act. Proceedings under Section 147 compelled her to file her return and disclose the above return and to pay tax on the income. The Assessing Officer assessed t........