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TMI Blog2018 (3) TMI 962X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. The tax paid by the assessee under Section 140A also did not include any interest. Hence, there was no question of applying sub-Section (2) of Section 234B. On re-assessment after the re-computation of the total income, the tax demand was raised after giving credit of tax paid under Section 140A and also adding on the refund with interest. There again was a demand raised after adjustments. As we have noticed, there is definite increase of tax liability from the regular assessment at the time of re-assessment. There is no dispute that the advance tax payable at 90% of the liability to tax, had not been satisfied. The interest payable under sub-Section (1) of Section 234B was levied in the regular assessment. On re-assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 234B(3) of the Income Tax Act, 1961 ( Act , for short). Regular assessment of the assessee under Section 143(3) was completed on 26.3.1999. Interest under Section 243B C was levied and later that under Section 234B was reduced considerably. A re-assessment was carried out, under Section 143(3) read with Section 147 dated 18.3.2002. The Assessing Officer did not levy any interest under Section 234B(3), despite there being an increase in the tax liability on re-assessment. Later, by Annexure-A order under Section 154 of the Act, the Assessing Officer levied interest on the enhanced tax component. An appeal was filed to the first appellate authority which stood rejected. The assessee was before the Income Tax Appellate Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 140A did not include any interest and the same was refunded on 27.3.1998 with interest. In the regular assessment under Section 143, the total tax computed along with surcharge came to ₹ 3,31,30,433/-. The regular assessment was made on 26.3.1999 and the payment under Section 140A of ₹ 6,20,06,000/- was on 29.6.1996. However, we see from the assessment order that even before the regular assessment was completed, the refund as claimed by the assessee even as per the revised assessment on which tax under Section 140A was paid, was made to the assessee with interest, on 27.3.1998. The refund was of ₹ 7,26,91,413/-. The balance demand as per the regular assessment was ₹ 6,26,58,924/-. 6. On re-assessment a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4B(3) on re-assessment if the interest leviable, for reason of short fall in payment of advance tax is increased, then from the first day of April next following such financial year, there shall be interest levied at the rate of 2% on the differential tax component, i.e. the increased demand of tax on such re-assessment, from that assessed as per the regular assessment. As we have noticed, there is definite increase of tax liability from the regular assessment at the time of re-assessment. There is no dispute that the advance tax payable at 90% of the liability to tax, had not been satisfied. The interest payable under sub-Section (1) of Section 234B was levied in the regular assessment. On re-assessment, the liability for advance tax also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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