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TMI Blog2017 (12) TMI 1524X X X X Extracts X X X X X X X X Extracts X X X X ..... of return - the interest computed by Ld. AO under section 234A is confirmed. Levy of interest under section 234B - Held that: - section 234B is applicable where assessee fail to deposit advance tax or the advance tax deposited is less than 90% of the taxable income - In the present case Assessee admittedly has not deposited advance tax for any of the three quarters - assessee is liable to interest under section 234B at 1% for every month starting from 1st day of financial year relevant to the assessment year from 01/04/13 to 29/11/14. Appeal dismissed - decided against assessee. - ITA No. 5070/Del/2016 - - - Dated:- 28-12-2017 - SHRI G.D.AGRAWAL, PRESIDENT AND SMT. BEENA A PILLAI, JUDICIAL MEMBER For The Appellant : Sh. Rajesh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of deposit of self asstt. tax amounting to ₹ 20,96,404/- is liable to be deleted. 3. Charging of interest u/s 234B of ₹ 3,35,424/- by the Ld. A.O. treating interest charged u/s 234A of ₹ 20,96,404/- as 'assessed tax' and computing interest u/s 234B on such assessed tax and confirmation of the same by CIT(A) is contrary to fats and laws and therefore is liable to be deleted. The appellate craves for any addition, modification, deletion of grounds of appeal if find necessary during the course of appeal. 2. Brief facts of the case are as under: Assessee is in receipt of intimation under section 143(1) dated 19/04/15 wherein interest under section 234 A B has been computed at ₹ 20,96,404/- an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.20,96,404.00 (ii) u/s 234B additional interest @ ₹ 20964/- pm from 1.1.2014 to 30.4.2015 (16 months) considering above enhancement of interest u/s 234A as assessed tax for the purpose of s.234B Rs.3,35,424.00 Total of demand raised as per Intimation u/s 143(1) Rs.24,31,828.00 The Ld.AR placed reliance upon the following decisions in support of his submissions. * Hon ble Supreme Court in the case of CIT versus Pranoy Roy (supra); * Roshan Lal Kapoor versus ACIT reported in (2007) 108 TTJ 740 (Chennai); * CBDT Circular No. 549 dated 31/10/89 2.3. On the contrary Ld.DR placed reliance upon the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following the due date upto the date of furnishing the return (in cases where return is furnished after the due date) or upto the end of the Assessment Year (in cases where no return is furnished) on the amount of shortfall in total income tax payable by the assessee. 3.5. On perusal of the order dated 19/04/15 it is observed that due date of filing the original return was 30/11/13 whereas assessee filed the return on 29/11/14 thereby causing a delay of 12 months. By applying Section 234A, in our considered opinion, assessee is liable to pay interest under section 234A for the period commencing on the date immediately following the due date upto the date of furnishing the return (in the present case return is furnished after the due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicable to the facts of present case: ( ii) Section 234 B : Interest payable for default in payment of advance tax An assessee who is liable to pay advance tax has failed to pay such tax or where the advance tax paid by such assessee 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 for period from the date on which the payment of advance tax became due on the amount of shortfall in the amount of advance tax paid. 4.1 . In our opinion section 234B is applicable where assessee fail to deposit advance tax or the advance tax deposited is less than 90% of the taxable income. In the present case Assessee admittedly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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