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TMI Blog2017 (3) TMI 798X X X X Extracts X X X X X X X X Extracts X X X X ..... me determined in any earlier assessment. Therefore, in our view, the fresh liability towards interest under s.234A & 234-B shall arise in pursuance of order under s.153A of the Act only upon increase in the total income determined qua the earlier assessment. The earlier regular assessment in the instant case survives and does not stands abated. The interest liability already determined thereon under s.234-A & 234-B survives and is an enforceable recovery as per law. Merely because fresh assessment has been carried out pursuant to search, the interest liability on the assessed income earlier cannot resurface on the same amount already assessed earlier in view of the scheme of the Act. Resultantly, in our view, liability towards interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in the order passed under section 153A r. w. s. 143(3) of the Act dated 28-02-2015 even though the interest liability has been raised on the appellant company. 3. The learned Commissioner of Income Tax (A)-11, Ahmedabad has erred in law as well as on facts in upholding the working of the notice of demand for the year under consideration by the Asstt. Commissioner of Income-tax, Central Circle - 1,Rajkot. 4. The learned Commissioner of Income Tax (A)-11, Ahmedabad has erred in law as well as on facts in not taking into account the ground raised regarding the calculation of the interest under section 234A of the Act by the appellant while deciding the appeal of the appellant company and thus the order passed by the learned Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) - 11 has erred in law as well as on facts in appreciating the fact that there is no fresh addition under the order passed u/s. 153 A r.w.s. 143(3) then how the interest liability which has already been determined has changed. 3. Briefly stated, the assessee filed its return of income for AY 2007- 08 on 19/10/2007 declaring a total income of ₹ 57,68,700/- which was processed under s.143(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) without any modification. Thereafter, the case was selected for scrutiny and the assessment under s.143(3) of the Act was completed on 24/12/2009 determining the total income at ₹ 21,60,27,110/-. Subsequently, after giving appeal effect to the CIT(A) s dated 10/06/2010, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee Mr.Sagar Shah, we have perused the orders of the authorities below referred hereinabove as well as provisions of section 234-A 234-B of the Act. The narrow question that arises for our determination is whether interest liability on tax under s.234A 234B can be fastened on the assessee on the income already assessed in the course of regular assessment in the garb of fresh proceedings under s.153A of the Act when the income assessed earlier remains unaltered in section 153A proceedings also. 4.1. Relevant here to note text of section 234A(3) which reads as under:- 234A. (3) Where the return of income for any assessment year, required by a notice under section 148 [or section 153A] issued [after the determination of incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng on the day following [the date of determination of total income under sub-section (1) of section 143 [and where a regular assessment is made as is referred to in sub-section (1) following the date of such regular assessment] and ending on the date of the reassessment or recomputation under section 147 [or section 153A], on the amount by which the tax on the total income determined on the basis of the reassessment or recomputation exceeds the tax on the total income determined [under sub-section (1) of section 143 or] on the basis of the regular assessment aforesaid. [underline is ours ] 5. A bare reading of the text of both the sections, similarly worded, as underlined by us for the sake of convenience, unravel that the liabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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