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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 ..... up the issue relating to computation of interest under section 234 B of the IT Act. Under the provisions of said section, in case the advance tax paid by assessee during the year is less than 90% of the assesseed tax the assessee is liable to simple interest at the specified rate from the 1st day of the next financial year to the date of determination of total income under section 143 (1) or till the date of regular assessment in case regular assessment has been made. Further, in case the assessee has paid self assessment tax 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 interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest u/s 234 B for further period from 1.10.98 onwards. 2.1. The assessee dipsuted the decision of AO before CIT (A) who had directed the AO to not reduce the sum of Rs. 13,00,00,000/- from the self assessment tax for the purpose of computation of shortfall for further levy of interest from 1.10.98 onwards. Aggrieved by the decision of CIT (A), the revenue is in apeal before Tribunal. 3. We have heard both the parties in the matter. The learned AR for assessee reiterated the submissions made before CIT (A) that the interest 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvance tax was Rs. 81.30 crore. The assessee had paid self assessment tax of Rs. 28.55 crore on 30.11.98. The interest payable u/s 234 B from 1.4.98 to 30.11.98 was Rs. 13,00,00,000/-. The issue is whether for further levy of interest under section 234 B from 1.10.98 onwards, the sum of Rs. 13,00,00,000/- is required to be deducted from self assessment tax for the purpose of computation of shortfall. The self assessment tax included a sum of Rs. 4.05 crore being the interest under section 234 C. The assessee, therefore, reduced 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 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r assessment. We, therefore, see no infirmity in the order of CIT (A) which is also supported by the decision of Tribunal in case of DCIT Vs. Oriental Aeromatics Pvt. Ltd. (Supra). The order of CIT (A) is accordinlgy upheld. 5. The second dispute is regarding levy of interest u/s 234 D. Under the said provisions, in case refund has been granted to the assessee u/s 143 (1) and subsequently on regular assessment it is found that no refund is due or refund due is lower, then the assessee is liable to pay interest at the specified 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 sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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