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TMI Blog2012 (8) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... lant - CO of the assessee is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... resenting the amount of deferred tax provisions, charged to the Profit & Loss Account. The assessee did not object to the proposed rectification u/s 154 of the Act and, consequently, the AO recomputed the income u/s 115JB of the Act at Rs. 23,23,38,658/-, as against Rs. 4,09,12,748/-, assessed originally u/s 143(3) of the Act. The AO, in the assessment order u/s 154 of the Act dated 22.05.2008 charged interest u/s 234D of the Act amounting to Rs. 9,13,378/-. The AO also withdrew interest granted to the assessee u/s 244A of the Act. Both the CIT(A) vide order dated 26.02.2009 and the Tribunal in ITA No. 494/Chd/2009 vide order dated 26.08.2010, adjudicated the issue of levy of interest u/s 234D of the Act against the revenue. A perusal of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , has been increased/reduced, the interest shall, accordingly be increased/reduced. It is pertinent to reproduce the provisions of Section 244A for the purpose of proper appreciation of the legislative intent, contained therein : "244A. (1) Where refund of any amount becomes due to the assessee under this Act, he shall subject to the provisions of this Section, be entitled to receive, in addition to the said amount, simple interest thereon calculated in the following manner, namely : (a), (b) and (2)** ** ** (3) Where, as a result of an order under sub-section (3) of Section 115WE or Section 115WF or Section 115WG or sub-section (3) of Section 143 or Section 144 or Section 147 or section 154 or Section 155 or Section 250 or Section 254 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al and clear legislative intent enshrined in the provisions of Section 244A(3) of the Act, it is not tenable to resort to the interpretative process of such simple and clear language of the provisions of the Act. Therefore, the claim of the assessee, founded on the basis of analogies and inferences, is not statutorily valid in the light of the specific, clear provisions of Section 244A(3) of the Act and also in the light of common law jurisprudence. The relevant part of the findings of CIT(A), as contained in para 5.1 of the appellate order dated 26.02.2009, is reproduced hereunder : "5.1 Coming to the issue of withdrawing of interest u/s 244A, it is the contention of the ld. counsel that for similar arguments as advanced by him against ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undable. Such a situation has been covered under the scheme of Act by inserting various provisions, which is in consonance with the general law and tenants of rational jurisprudence. The provisions enshrined in the Income-tax Act, 1961 are sections 234A(4), 234B(4), 234D(2), 244A(3), 221(2), 215(3) and 214(1A) of the Act. It is pertinent to highlight here that imposition of additional tax liability, by way of tax, is covered under separate statutory provisions, whereas the levy of interest is provided under different set of statutory provisions under the Act. The issue in question falls u/s 154 of the Act. The charging of interest is compensatory in nature. If a tax demand raised by the AO is varied by an appellate or revisional authority, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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