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TMI Blog2016 (7) TMI 945X X X X Extracts X X X X X X X X Extracts X X X X ..... our view is not applicable. In fact, the provisions of section 245C makes it abundantly clear that such tax and interest thereon have to be paid under the provisions of this Act had the income been disclosed in the application but was declared in the return of income before the AO on the date of application. The words referred in 245C clearly shows that the date of application for settlement will relate back to the filing of the return before the AO and, therefore, the tax and the interest thereon is required to be calculated in the manner provided under section 234B. The section 234B(1) clearly mentioned that if there is a difference in advance tax or the tax, then the interest is required to be paid from 1st April following next financial year.- Decided against assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... e is increased by any appellate authority. Therefore, AO was justified in computing the interest u/s 234B of the IT Act. I do not find any infirmity in the order of the AO on this account." 4. Now the assessee is in appeal before us. 4.1. The ld. A/R submitted that the following dates are relevant for deciding the issue :- Particulars A.Y. 2003-04 A.Y. 2004-05 Date of filing of return u/s 139 27.11.2003 01.11.2004 Date of intimation u/s 143(1) 28.05.2004 31.05.2005 Date of Notice u/s 153A 7.9.2006 7.9.2006 Filing of return in response to notice u/s 153A 12.10.2006 12.10.2006 Date of filing of settlement petition 22.12.2006 22.12.2006 Date of deemed admission u/s 245D(1) 31.07.2007 31.07.2007 Date of order passed u/s 245D(4) 7.2.2013 7.2.2013 He submitted that in the case of the assessee total income is determined under section 143(1) on the dates mentioned above. Thereafter, there was a search and assessee was required to file the return under section 153A. Assessee after filing the return under section 153A moved petition before Hon'ble Settlement Commission to settle the case by passing order under section 245D(4). Therefore, the order passed by the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of ITA No. 605/2015. Before we decide the issue, we reproduce the relevant provisions hereunder : "Section 234B. Interest for defaults in payment of advance tax. (1) Subject to the other provisions of this section, where, in any financial year, an assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period from the 1st day of April next following such financial year to the date of determination of total income under sub-section (1) of section 143 and where a regular assessment is made, to the date of such regular assessment, on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax. Explanation 2. - Where, in relation to an assessment year, an assessment is made for the first time under section 147 or section 153A, the assessment so made shall be regarded as a regular assessment for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 153A or section 153C, have been initiated, the additional amount of income-tax payable on the income disclosed in the application exceeds ten lakh rupees, (ii) In any other case, the additional amount of income-tax payable on the income disclosed in the application exceeds ten lakh rupees, and such tax and the interest thereon, which would have been paid under the provisions of this Act had the income disclosed in the application been declared in the return of income before the Assessing Officer on the date of application, has been paid on or before the date of making the application and the proof of such payment is attached with the application. As per section 245C, the assessee is required to make an application for settlement of cases in the prescribed format as mentioned in section 245C(1) to the Settlement Commission and if such case is arising out of the proceedings for assessment or reassessment u/s 153A, then the additional amount of income tax payable should exceed ₹ 50 lakhs, as in the present case, and the assessee is required to pay such tax and interest thereon which would have been paid under the provisions of this Act had the income been disclosed in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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