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TMI Blog2018 (1) TMI 1285X X X X Extracts X X X X X X X X Extracts X X X X ..... 4) only and not u/s.234B(3) and it would be even encountered that no interest is chargeable for that portion of the income forming part of the total income as determined by the ld.CIT in his order u/s.263, which was not earlier part of the income determined by the ld. Assessing Officer. The interest charged in terms of Sec.234B become payable on the income already disclosed in the return filed, together with the income determined by the AO in consequent to the order passed u/s.263 of the Act. The concerned interest shall be on the consolidated amount of income i.e. both determined in re-assessment order and income determined in consequent to revisional order passed u/s.263, when the reassessment order was subject to revision u/s.263 of the Act. Accordingly, we hold that the interest u/s.234B of the Act to be charged in these cases from the first day of each assessment year to relevant to assessment year till the date of the completion of assessment made i.e. 20.03.2013 and not to the date, the reassessment order was passed i.e.31.12.2009. - Decided against assessee. - I.T.A.Nos.1791, 1792, 1793 And 1794/Mds./2017 - - - Dated:- 11-10-2017 - SHRI CHANDRA POOJARI, ACCOUNTANT MEM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Commissioner of Income-tax (Appeals) erred in dismissing the ground raised against levy of interest u/s 234A and 234B as only consequential without considering the claim of the appellant. 7. The appellant submits that the assessing officer was not correct in levying interest under section 234B from the 1st day of the assessment year till the date of completion of the assessment made on 20/3/2013 when the regular assessment was completed on 31/12/2009 itself. 8. The appellant submits that the levy of interest is contrary to the provisions of section 234B(4) of the Act and against the law laid down by the Income-tax Appellate Tribunal Ahmedabad in ITA No. 2426/Ahd/2009 dated 5/8/2011 in the case of ACIT Vs. Sallaluddin M. Kadri. 9. The appellant submits that in any view of the matter, the value determined by the District Valuation Officer is on the high side and not in accordance with the prevailing market rate 10. The appellant therefore prays that the order of the assessing officer may be cancelled and the addition made may be deleted. The assessing officer may also be directed to re-compute the interest levied u/s 234B in terms of section 234B(4) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tionate basis for four assessment years from assessment year 2003-2004 to 2006-2007. Being aggrieved by the order of the Assessing officer, the assessee preferred an appeal before the Learned CIT(A). On appeal, the Ld.CIT(A) decided the cost of construction for ₹ 13,22,496/- in total for four Assessment Years 2003- 2004 to 2006-2007 and directed the Assessing Officer to revise the order accordingly vide its order dated 02.02.2011. The ld. Assessing Officer revised the taxable income for ₹ 3,76,620/- in obeying the Ld.CIT(A) s instruction strictly vide his order dated 28.03.2011. Subsequently the Learned Commissioner of Income Tax, Pondicherry issued a show cause notice u/s 263 requesting the assessee to explain as to why the difference between the district valuation report and the approved engineer s valuation report for ₹ 5,97,841/- should not be considered for further taxation u/s.69 vide his letter C. No 9127A(35)CIT/PDY/2011-12 dt 29.08.2011. The assessee submitted her reply on various occasions from time to time. Finally the Learned Commissioner of Income Tax, Pondicherry passed order u/s 263 vide order dt.28.03.2012 directing the Assessing Office to redo the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 1 .- In this section, 'assessed tax' means the tax on the total income determined under sub-section (1) of section 143 and where a regular assessment is made, the tax on the total income determined under such regular assessment as reduced by the amount of,- ( i) any tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income ; ( ii) any relief of tax allowed under section 90 on account of tax paid in a country outside India ; ( iii) any relief ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ( 4) Where, as a result of an order under section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264 or an order of the A.O under subsection (4) of section 245D, the amount on which interest was payable under sub-section (1) or sub-section (3) has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and ( i) in a case where the interest is increased, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly ; ( ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded. ( 5) The provisions of this section shall apply in respect of assess ments for the assessment year commencing on the 1st day of April, 1989, and subsequent assessment years. 11. Section 234B provides for the payment of interest on default in the payment of advance tax. The provision is attracted where in any financial year: (i) an assessee who is liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax. When sub-section (4) of section 234B refers to the amount on which interest was payable under sub-section (1) or sub-section (3) , that amount is the difference between the advance tax paid and the assessed tax. The words on which interest was payable have been used in a descriptive sense to identify the amount specified in sub-section (1), or as the case may be, in sub-section (3). In sub-section (1), the amount is the difference between the advance tax and the assessed tax. These words do not impose a condition that for interest to be attracted under section 234B(4) interest should actually have been levied under the original order of assessment under sub-section (1). 13. In the present case, regular assessment order u/s.143(3) r.w.s.147 of the Act completed on 31.12.2009 was subject to revisional order of ld. CIT. Consequent to order of the ld. CIT passed u/s.263 of the Act dated 28.03.2012, the AO finally concluded the impugned assessment on 20.03.2013 and he charged the interest u/s.234B of the Act from First day of the assessment year till the date of completion of assessment i.e. on 20.03.2013. The effect of revisional order by ld. CIT in this case resulted in en ..... X X X X Extracts X X X X X X X X Extracts X X X X
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