9911796707
TMI Blog2006 (4) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... total income of the assessee was worked out at Rs. 11,080. The assessee had given credit in respect of TDS of Rs. 3,82,951 and advance tax paid at Rs. 1,30,032, totalling to Rs. 5,12,983. While giving effect to the order of the CIT(A), some adjustment were made and the assessee was also granted interest under s. 244A at Rs. 2,52,828, vide order dt. 4th March, 1996. Subsequently, the AO initiated reassessment proceedings and the reassessment of the assessee was completed under s. 143(3) r/w s. 147 of the Act vide order dt. 20th Oct., 1997 and the assessee's gross total income was recomputed at Rs. 80,55,145. The assessee challenged this impugned order before the CIT(A), who gave relief to the assessee to the extent of Rs. 75,18,734. The AO passed order on 10th March,1999 giving effect to the appellate order of the CIT(A) and the total income of the assessee was recomputed at Rs. 5,36,410. Again, reassessment proceedings were initiated under s. 147 of the Act and reassessment of the assessee was completed vide order on dt. 14th March, 2002 and worked out the total income of the assessee at Rs. 9,36,870. The assessee again challenged this order of the AO before the CIT(A). The AO vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g that in the order dt. 10th Nov., 2003, giving effect to the order of the CIT(A) dt. 29th July, 2003 and the judgment of the Hon'ble High Court of Kerala in ITA No. 45 of 2003 dt. 22nd Aug., 2003, interest under s. 234B(3) of the Act was charged from 3rd March, 1995 to 14th March, 2002, i.e. from the date of original assessment order under s. 143(3) to the date of reassessment under s. 143(3) r/w s. 47 of the Act. Further it was stated that the original assessment order passed under s. 143(3) after giving effect to the order of the CIT(A) total income of the assessee was computed at Rs. 1,080 and tax payable was Nil. It was further stated that total tax paid by way of TDS and advance tax paid during the year was Rs. 5,12,983. It was further stated that in the last order dt. 10th Nov., 2003 total income of the assessee was finally worked out at Rs. 23,32,002 and tax payable thereon including surcharge was worked out at Rs. 4,59,043. It was also stated that after giving credit of the prepaid taxes, i.e. TDS and advance tax, the excess payment was worked out at Rs. 53,940. But at the same time, interest under s. 234B(3) of the Act for the period from 31st March, 1995 to 14th March, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the appellate order of the CIT(A) the assessee's income was computed at Rs. 11,080. Hence, as per the first assessment order, final income of the assessee was Rs. 11,080 and there was no liability to pay any advance tax. Subsequently, on two occasions the assessments were completed under s. 143(3) r/w s. 147, as the proceedings under s. 147 for both the occasions were initiated. Finally, the assessee's assessment was completed by the AO vide order dt. 14th March, 2002 and subsequently, the AO passed order dt. 10th Nov., 2003, which is the order giving effect to the order of the CIT(A) as well as to the judgment of the Hon'ble High Court of Kerala in ITA No. 45 of 2003 dt. 22nd Aug., 2003 and finally the total income of the assessee for the asst. yr. 1992-93 was worked out at Rs. 23,32,002 and total tax payable was worked out at Rs. 4,59,043. It is not disputed that the assessee was given the credit of Rs. 5,12,983 in respect of the TDS and advance tax and after giving credit of the TDS, the assessed tax comes to Rs. 76,092 and as against this, the assessee has paid the advance tax of Rs. 1,30,032. Hence, there is no contravention of s. 234B(1) of the IT Act, 1961 and there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of total income under sub-s. (1) of s. 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-s. (1) of s. 143 or on regular assessment as reduced by the amount of tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income. Explanation 2.-Where, in relation to an assessment year, an assessment is made for the first time under s. 147 or s. 153A, the assessment so made shall be regarded as a regular assessment for the purposes of this section. Explanation 3.-In Expln. 1 and in sub-s. (3) "tax on the total income determined under sub-s. (1) of s. 143" shall not include the additional income-tax, if any, payable under s. 143. (2) Where, before the date of determination of total income under sub-s. (1) of s. 143 or completion of a regular assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay interest under s. 234B. Sub-s. (1) of s. 234B starts with "subject to the other provisions of this section" and again refers to s. 208 and states that if there is a failure on the part of the assessee to pay the advance tax, or if the assessee has paid the advance tax less than 90 per cent of the assessed tax, then the assessee is liable to pay interest. Different Explanations are added to sub-s. (1) of s. 234B. Explanation 1 defines the term "assessed tax". That means total tax determined under sub-s. (1) of s. 143 or on regular assessment. The term "regular assessment" has been defined in sub-s. (40) of s. 2, and means the assessment made under sub-s. (3) of s. 143 or s. 144. Explanation 2 to sub-s. (1) of s. 234B enlarges the scope of the definition by stating that if the assessment is made for the first time under s. 147 then the assessment so made shall be regarded as regular assessment for the purpose of the said section. It is clear from the reading of s. 234B(1) of the Act that the assessee must be liable to pay advance tax, if his tax liability is Rs. 5,000 or more for that assessment year. Moreover, assessed tax has been defined in Expln. (1) and as per the Expln. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10th Nov., 2003. That appears the last order passed by the AO giving effect to the order of the CIT(A) and also the judgment of the Hon'ble High Court of Kerala in ITA No. 45 of 2003 dt. 22nd Aug., 2003 and final income of the assessee was determined at Rs. 23,32,002. It is well settled proposition of law that there cannot be piecemeal assessment in respect of the assessee. The regular assessments can be made only under ss. 143 and 144 of the Act. It is well settled proposition of law that S. 147 is a machinery provision and if the reassessment proceedings are initiated then assessment is set aside to the extent, the reasons given by the AO and also that the reassessment order merges with the regular assessments. In sum and substance, in assessee's case the final tax liability determined by the AO was Rs. 4,59,043 and as stated by the AO in the order, he has given the credit for the prepaid taxes amounting to Rs. 5,12,983. Here also the total assessed tax for the purpose of sub-s. (1) of s. 234B is to be worked out after reducing the amount of TDS of Rs. 3,82,951 and after reducing the TDS from the total tax worked by the AO the assessed tax for the purpose of sub-s. (1) of s. 234 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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