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TMI Blog2013 (6) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... s requried to be computed under section 234B (2) (ii) on the amount by which self assessment and advance tax paid falls short of the assessed tax at the specified rates. In this case self assessment tax after excluding the interest u/s 234C was only Rs. 24.50 crore. Therefore, only this sum is required to be reduced from the shortfall of Rs. 81.30 crore for further computation of interest. The sum of Rs. 13,00,00,000/- which is the interest computed for the period from 1.4.98 to 30.11.98 is not required to be excluded from self assessment tax as the same was not payable under section 140 A but became payable on regular assessment. In favour of assessee. Interest u/s 234D - excess refund - Held that:- The provisions of section 234 D apply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the time of filing of return of income, the interest under the provisions of section 234 B (2) (i) is required to be computed for the period till the date of payment of self assessment tax as reduced by the interest charged u/s 234 B and included in the payment u/s 140 A. The interest payable on further period from the date of self assessment tax payment is to be computed on the amount by which the self assessment along with the advance tax paid falls short of the assessed tax. In this case, the shortfall in payment of advance tax with respect to the assessed tax was Rs. 81.30 crore on which there is no dispute between the parties. The assessee had paid self assessment tax of Rs. 28.55 crore on 30.11.1998 i.e. the date of filing of retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest chargeable under section 234 B (2) (i) Rs.13,00,00,000/- is not required to be reduced from self assessment tax paid while computing the shortfall for the purpose of computation of interest for the further period from 1.10.98, as no interest u/s 234 B was payable u/s 140 A as the same was to be computed based on reassessed income. The interest of Rs. 13,00,00,000/- had been found payable on the basis of assessed incomeon regular assessment. It was also submitted that decision of CIT (A) was supported by the decision of Tribunal in case of DCIT Vs. Oriental Aeromatics Pvt. Ltd. in ITA no. 9021/M/95 dated 29.7.2002. Learned DR on the other hand supported the order of AO and placed reliance on the findings given in the assessment order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced the said interest from the self assessment tax and the balance amount of Rs. 24.50 crore was reduced from the shortfall of Rs. 81.30 crore and the interest u/s 234 B was computed from 1.10.98 onwards on the balance sum of Rs. 56.80 crore. The AO has however reduced the interest of Rs. 13,00,00,000/- and Rs. 4.05 crore from the self assessment tax which was Rs. 24.50 crore and the balance amount has been reduced from the shortfall of Rs. 81.30 crore and thus comuted further interest on the sum of Rs. 71.32 crore. 4.1 In our view, action of the AO is not justified. The interest till the date of self assessment tax payment has to be computed u/s 234 B (2) (i) in the prescribed manner and from the said interest, interest u/s 234 B include ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified rate. The said provision which was inserted by Finance Act 2003 is applicable w.e.f 1.6.2003. Subsequently Explanation II has been inserted by the Finance Act 2012 w.e.f 1.6.2003 as per which the provisions of section 234 D would also apply to assessment years commencing before 1.06.2003 if the proceedings in respect of such assessment year is completed after the said date. The issue is whether interest u/s 234 D can be levied in this case. The learned AR for the assessee submitted that assessment in this case u/s 143 (3) had been completed on 1.03.2001 which is prior to 1.6.2003 and, therefore, provisions of section 234 D are not applicable. It was also submiteed that in this case no refund had been granted u/s 143 (1) and, therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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