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TMI Blog2011 (2) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... al premises of the assessees on 21-8-2005. Consequently, notices under section 153A were issued on the assessees on 4-9-2006 and served on 5-9-2006. In response to the notices issued under section 153A, the returns were filed by both the assessees on 31-10-2006. Here we may mention that the notice under section. 153A in the case of Smt. Kalyani Jayakumar was issued only on 30-11-2007 even though the return was filed on 31-10-2006. the assessment came to be completed under section 143(3) read with section 153A of the Income-tax Act, 1961 on 28-12-2007 accepting the returns filed. In the assessments no interest under sections 234A, 234B and 234C of the Act was charged. Subsequently notices under section 154, dated 5-1-2009 on the assessees wherein it was proposed to levy interest under sections 234A, 234B and 234C of the Act for the relevant assessment years on the ground that it was a mistake apparent from the record. The assessees had replied to the show-cause notices vide letter, dated 12-1-2009 wherein they had challenged the levy on the ground that it was a debatable issue. The Assessing Officer overruled the objections of the assessees and proceeded to levy the interest under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e submission that it has been repeatedly held that interest is only compensatory and therefore the credit of the taxes paid should first be given. 6. In reply, the learned DR submitted that the fact that there has been non-application of the specific provisions of sections 234A, 234B and 234C showed that there was a mistake apparent from the record. It was the submission that the non-application of specific provision of the Act was a mistake apparent from the record which was rectifiable by invoking the provisions of section 154. In regard to the quantum of interest, the learned DR submitted that the Assessing Officer had rightly quantified the interest and the learned CIT(A) had rightly confirmed the same. He vehemently supported the orders of the Assessing Officer and the learned CIT(A). 7. We have considered the rival submissions. We will first adjudicate on the quantum of interest. For better appreciation of the quantum issue, it would be worthwhile to extract the relevant provisions. Section 234A(3) reads as follows : "234A(3). Where the return of income for any assessment year, required by a notice under section 148 or section 153A issued after the determination of income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to be furnished under section 139. Thus from the above it is clear that a return filed in response to a notice under section 153A is to be treated as a return filed under section 139(1). Thus by the act of the provisions of section 153A where a notice has been issued on the assessee the due date of filing the return as provided in section 139(1) gets shifted to the date prescribed in the notice under section 153A. This is because of the words "apply accordingly as if such return were a return required to be furnished under section 139". A perusal of the return filed by the assessee shows that in the returns the assessee has paid taxes while filing the return itself. It has also been mentioned by the learned authorised representative that cash which was found in the course of search and which was seized was also immediately prayed for by the assessee to be adjusted against the tax liability in the statement recorded itself during the course of search. Thus it becomes clear that the assessee has paid the taxed much before the filing of the returns. A perusal of the provisions of section 234A(3), as extracted above, clearly shows that the said sub-section takes into consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (b) of the second proviso to section 143(1) categorically explains that the acknowledgement of the return shall be deemed to be the intimation in a case where no sum is payable by or refundable to the assessee under clause (c), and where no adjustment has been made under clause (a). Thus the intimation of the return filed in response to the notice under section 153A automatically by act of the provisions of the Explanation to section 143(1) becomes the intimation under section 143(1). Thus the interest under section 234B would be leviable only on the tax on the total income determined in the order passed under section 153A which exceeds the tax on the total income determined under sub-section (1) of section 143 in response to the notice under section 153A. 10. In regard to the levy of interest under section 234C, there is no provision similar to section 234A(3) or section 234B(3) in the said section. The learned authorised representative has also not raised any serious submissions in regard to the levy of interest under section 234C of the Act in regard to the calculation of the same. 11. In the circumstances, the computation of the interest under section 234A is to be done for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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