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TMI Blog2016 (8) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... re, which may warrant a different view. See M/s ACG Associated Capsules Pvt. Ltd. (Formerly M/s Associated Capsules Pvt. Ltd.) [2012 (2) TMI 101 - SUPREME COURT OF INDIA] - Decided in favour of the assessee and against the Revenue. Levy of Section 234A, 234B and 234C - Held that:- Apex Court in the case of CIT v. Bhagat Construction Co. P. Ltd. & Anr., [2015 (8) TMI 621 - SUPREME COURT ] wherein, it has been held that under the provisions of Section 234B, the moment an assessee liable to pay advance tax has failed to pay such tax or where the advance tax paid by 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. The levy of such interest is automatic when the conditions of Section 234B are met. Learned counsel for the assessee was not in a position to point out any distiguishing feature, which may warrant a different view. Consequently, Question is answered in favour of the Revenue and against the assessee. Levy of interest under Section 234D - Held that:- Addition of explanation (2) to section 234D of the Act by Finance Act, 2012, with retrospectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not initiated levy or charge of interest in the body of the assessment order? (5) Whether on the facts, the Tribunal is right in law in confirming levy of interest under Section 234D of the Income Tax Act, 1961 though the provision was inserted with effect from 01.06.2003? 2. The assessee is a public limited company, engaged in the business of manufacture and sale of road construction and maintenance machineries and spares thereof. On 28.11.2003 the assessee filed its return of income for the A.Y. 2003-04 declaring total income at ₹ 8,64,37,864/. The return was processed and ultimately, the assessment order came to be passed on 30.03.2005 declaring total income at ₹ 8,97,96,482/- after making certain additions / disallowances. Against the said order, the assessee preferred appeal before the CIT(A). The said appeal was partly allowed by order dated 09.11.2006. Being dissatisfied with the order of CIT(A), both the assessee and Revenue preferred appeals before the Tribunal. By common order dated 16.01.2009, the appeal preferred by assessee was partly allowed whereas, that of Revenue was allowed. Being aggrieved by the said order, the assessee has preferred the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jarat State Financial Services Ltd., [2014] 49 taxmann.com 221 (Gujarat) wherein, the following observations have been made in Para5.6 of the said decision: 5.6 This very issue came up for scrutiny before the Bombay High Court in the case of Commissioner of Income-tax v. Indian Oil Corporation Ltd., reported in 2010 TAXMAN 466 and the Bombay High Court has held that addition of explanation (2) to section 234D of the Act by Finance Act, 2012, with retrospective effect from June 01, 2003, is made applicable even to the period under assessment year 2004-2005. In respect of excess refund granted to the assessee under section 143(1) of the Act, the interest was payable by the assessee even if it was received prior to June 01, 2003, so long as the proceedings of the concerned assessment year for which the refund was granted was completed after June 01, 2003. The Bombay High Court held the explanation 2 to section 234D of the Act as declaratory/ clarificatory in nature. The same being declaratory/ clarificatory, the same was held to be applied with retrospective effect. In the words of the Bombay High Court : (21) The question therefore is whether the words in section 234D ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be deemed to have been paid towards such regular assessment; (b) if no refund is due on regular assessment or the amount refunded under sub section (1) exceeds the amount refundable on regular assessment, the whole or the excess amount so refunded shall be deemed to be tax payable by the assessee and the provisions of this Act shall apply accordingly. It is clear therefore, that excess refund determined under section 143(3) of the Act is deemed to be tax payable by the assessee. However, as there was no provision of interest on the grant of refund under Section 143(1) of the Act it became necessary to provide for the same by having a charging provision. This was done by section 234D of the Act in respect of all pending assessments in which refund was given. Thus even if, a refund has already been granted, the same would be subject to the provisions of section 234D of the Act. Under section 234D(1) where the refund under section 143(1) is in excess of the amounts refundable on regular assessment, interest on the excess amount would be payable. In any case after the introduction of Explanation 2 there can be no doubt that even where refund is granted prior to 1/06/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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