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TMI Blog2024 (6) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1961, without appreciating that:- (i) Notice issued u/s 148 is bad in law, as it is not established that the reasons recorded are prior to the issuance of notice u/s 148. (ii) The AO has not followed the procedure laid by the Supreme Court in the case of GKN Driveshafts reported in 259 ITR 19 (SC), in as much as the objections raised by the assessee have not been rejected. (iii) There is reason to believe that income has escaped assessment, is not established. (iv) The order passed u/s 143(3) r.w.s. 147 is uncalled for where the AO himself agreed that there is no income which has escaped assessment, accordingly the proceedings needed to be dropped. 2. Interest u/s 234B: The AO erred in enhancing interest u/s 234B of the Act for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after making relevant enquiries from the party, seeking records, explaination of the assessee and verification of account, no adverse inference was drawn with regard to alleged escaped income and assessee's income which was determined as per the original assessment order passed u/s. 143(3) r.w.s. 144C(13) dated 30/01/2017 was accepted and there was no variation. The relevant conclusion of the AO reads as under:- "7. On perusal of assessee's submission and statement of bank account of M/s Mandal Traders for the relevant period, it is seen that assessee had sale transaction with the said party i.e. M/s Mandal Trader. Therefore, no adverse inference regarding escapement of income is drawn. Hence, assessee's income as determined at Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.1169 of 2006 vide order dated 06/08/2015 has held that the charging of interest u/s 234B is automatic when the condition of section 234B are met. As per the provisions of section 234B, if the advance tax paid is less than 90% of assessed tax then the interest u/s 234B is chargeable. The assessed tax is defined as tax on total income determined u/s 143(1) or regular assessment. In the present case, the AO has charged interest u/s 2348 on assessed tax from 1st April 2012 to the date of regular assessment as per the statutory provision. In view of the above discussion, the action of the AO of charging interest is upheld and the ground of appeal raised by the appellant is dismissed." 7. We have heard rival submissions and perused the materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as already completed 30/01/2017 and there was no variation in the re-assessment order dt. 18/12/2019, then where is the question of levying penalty of Section 234B for this period when assessee had already paid the entire demand arising out of order dated 30/01/2017 within the time limit of 30 days, i.e., by February 2017. Thus, there was no payment pending nor there is any variation in the income. Accordingly, we hold that assessee was not liable for charging of interest u/s. 234B from the period 30/01/2017 to 16/12/2017. Thus, interest computed by the ld. AO in the re-assessment order is deleted. 9. In so far as the issue relating to Section 147 in ground No.1, once we have given relief on the only issue of levy of interest, then same is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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