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TMI Blog2015 (11) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... whereas under Section 234C, what is to be determined is tax due on the returned income for the purpose of calculation of the shortfall in the advance tax paid. It is further clear that both the provisions are in mandatory terms and would apply automatically, as has been held by the Apex Court also in the Bhagat Construction Company case (2015 (8) TMI 621 - SUPREME COURT), the moment there is any shortfall in deposit of advance tax in terms of the provisions of Sections 234B and 234C of the Act. Thus, we are of the view that the present matter is squarely covered in favour of the appellant revenue by the decision of the Supreme Court in Kalyan Kumar Ray's case (1991 (8) TMI 291 - SUPREME COURT ). The first substantial question of law is, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The facts of this case lie in a narrow compass. The assessment was made under Section 143(3)/263 on total income of ₹ 65,35,430/- but the assessment order itself did not speak about the charging of any interest under Sections 234B and 234C. Vide ITNS 150 computation form, the amount of interest under Sections 234B and 234C were also shown. The appellants challenged the assessment order including charging of interest under Sections 234B and 234C under the ITNS 150 form. The contention of the assessee was that the interest should have been charged with reference to the income tax return and not the assessed income and further that the assessee also challenged the inclusion of demand notice with reference to the same in the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le Supreme Court in 247 ITR page 209 and relief by the Tribunal could be said to be still applicable as the amendment makes the charging of interest mandatory and not directory? So far as the first question is concerned, learned counsel for the Revenue relies upon a decision of the Apex Court in the case of Kalyan Kumar Ray vs. Commissioner of Income-Tax : 191 ITR 634 (SC), at page 638 of which, it has been held as follows : The statute does not, however, require that both the computations (i.e., of the total income as well as the sum payable) should be done on the same sheet of paper, the sheet that is superscribed assessment order . It does not prescribe any form for the purpose. It will be appreciated that once the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of the assessment year. This form is generally prepared by the staff but it is checked and signed or initialed by the Income-tax Officer and the notice of demand follows thereafter. The statute does not, in terms, require the service of the assessment order or the other form on the assessee and contemplates only the service of a notice of demand. It seems that while the assessment order used to be generally sent to the assessee, the other form was retained on file and a copy occasionally sent to the assessee. I.T.N.S. 150 is also a form for determination of tax payable and when it is signed or initialed by the Income-tax Officer, determining the tax payable, within the meaning of section 143(3). It may be, as stated in CIT v. Himalaya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such an assessee is less than 90 per cent of the assessed tax, the assessee becomes liable to pay simple interest at the rate of one per cent for every month or part of the month. Shri Guru Krishna Kumar is right in stating that levy of such interest is automatic when the conditions of Section 234B are met. We are of the view that the facts of the present case are squarely covered by the decision contained in Kalyankumar Ray's case inasmuch as it is undisputed that contained a calculation of interest payable on the tax assessed. This being the case, it is clear that as per the said judgment, this Form must be treated as part of the assessment order in the wider sense in which the expression has to be understood in the context ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which reads as under:- Explanation 1.- In this Section, assessed tax means the tax on the total income determined under sub-section (1) of Section 143 or on regular assessment as reduced by the amount of tax in accordance with the provisions of Chapter XVIII on any income which is subject to such deduction or collection and which is taken into account in computing such total income. The said provision has further been amended by the Finance Act, 2006 with effect from 1.4.2007 which however, is not relevant for ever purpose. It is evident from the aforesaid Explanation introduced by the Finance Act, 2001 that the decision of this Court as confirmed by the Apex Court in Ranchi Club Limited, will in no way be applicable to the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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