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TMI Blog2015 (6) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... law is not at all clear regarding the chargeability of interest under section 234C of the I.T. Act in a case where the assessment is completed at a figure below the returned income. In our opinion, merely because the assessee has declared higher income due to some error or mistake, the assessee shall not be liable to pay interest under section 234C of the I.T. Act on the returned income when the assessed income falls below the returned income. In our opinion, the assessee should be liable to pay interest under section 234C of the I.T. Act in such a peculiar case only on the assessed income when the same is determined at a figure below the returned income. In this view of the matter, we set-aside the order of CIT(A) and direct the Assessing Officer to re-compute the interest under section 234C of the I.T. Act on the assessed income. Decided in favour of assessee. - ITA No. 02/PN/2014 - - - Dated:- 12-6-2015 - Shri R. K. Panda And Shri Vikas Awasthy,JJ. For the Appellant : None For the Respondent : Shri B. C. Malakar ORDER Per R. K. Panda, A. M: This appeal filed by the assessee is directed against the order dated 22.11.2013 of the CIT(A), Kolhapur relat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... means the tax chargeable on the total income declared in the return of income furnished by the assessee. He accordingly, held that the Assessing Officer was justified in rejecting the claim of assessee. So far as charging of interest under section 244A of the I.T. Act is concerned, he observed that after appeal effect, refund raised was ₹ 1,39,86,400/-. According to him, the assessee is not entitled to interest under section 244A of the I.T. Act if the refund has arisen out of payment made on account of self assessment tax. The assessee is entitled to interest under section 244A of the I.T. Act only if the refund has arisen out of payment made under sections 115WJ, 199, 206C or advance tax. Distinguishing the decisions cited before him, the CIT(A) rejected the claim of assessee for reduction of interest under section 234C of the I.T. Act and payment of interest under section 244A of the I.T. Act on the self assessment tax paid. 8. Aggrieved with such an order of CIT(A), the assessee is in appeal before us. 9. We have considered the arguments of Ld. DR and perused the material available on record. So far as the non-granting of interest under section 244A of the I.T. Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tax due on the returned income, then, the company shall97 be liable to pay simple interest at the rate of [one] per cent per month for a period of three months on the amount of the shortfall from fifteen per cent or forty-five per cent or seventy-five per cent, as the case may be, of the tax due on the returned income; (ii) the advance tax paid by the company on its current income on or before the 15th day of March is less than the tax due on the returned income, then, the company shall be liable to pay simple interest at the rate of [one] per cent on the amount of the shortfall from the tax due on the returned income: Provided that if the advance tax paid by the company on its current income on or before the 15th day of June or the 15th day of September, is not less than twelve per cent or, as the case may be, thirty-six per cent of the tax due on the returned income, then, it shall not be liable to pay any interest on the amount of the shortfall on those dates; (b) the assessee, other than a company, who is liable to pay advance tax under section 208 has failed to pay such tax or,- (i) the advance tax paid by the assessee on his current income on or before the 15th d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 2001) and the assessee has paid the amount of shortfall on or before the 15th day of March, 2001 in respect of the instalment of advance tax due on the 15th day of June, 2000, the 15th day of September, 2000 and 15th day of December, 2000.] [Explanation.-In this section, tax due on the returned income means the tax chargeable on the total income declared in the return of income furnished by the assessee for the assessment year commencing on the 1st day of April immediately following the financial year in which the advance tax is paid or payable, as reduced by the amount of,- (i) any tax deductible or collectible 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; (ii) any relief of tax allowed under section 90 on account of tax paid in a country outside India; (iii) any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section; (iv) any deduction, from the Indian income-tax payable, allowed under section 91, on account of tax paid in a country outside India; a ..... 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