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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 ..... was no liability to pay interest u/s 234B thereafter. Once the ld. AO in his re-assessment order u/s. 143(3) r.w.s. 147 has accepted the income as determined vide original assessment order u/s. 143(3) dated 30/01/2017; and there is no discussion in the order enhancing the interest u/s. 234B between the period 31/01/2017 to 18/12/2019, then how interest can be charged for this period. CIT(A) has completely misunderstood the entire issue wherein he has held that charging of interest u/s. 234B is automatic and interest u/s. 234B is to be assessed from 01/04/2012 to the date of regular assessment. Here the regular assessment was already completed 30/01/2017 and there was no variation in the re-assessment order dt. 18/12/2019, then where is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stablished. (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 the period starting from date of passing order us/ 143(3) till the date of passing order u/s 147 dated i.e. from 31.01.2017 to 18.12.2019. 3. Ergo, assessee has challenged the validity of reopening u/s. 147 and enhancing the levy of interest u/s. 234B for the period starting from the date of passing of the original assessment order u/s. 143(3) dated 31/01/2017 till the date of passing of order u/s. 147 dated 18/12/2019. 4. The brief facts are that in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement 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. 851,03,41,560/- under normal provision vide order u/s 143(3) r.w.s 144C(3) dated 30.01.2017 stands. 5. Even though no variation in the income which has been assessed in the present order u/s. 147 / 143(3) and the original assessment order dated 30/01/2017 u/s. 143(3) r.w.s. 144C(13), ld. AO has calculated interest u/s. 234B from the date of original assessment order i.e. 30/01/2017 to 18/12/2019. Thus, assessee was aggrieved by such levy of interest u/s. 234B. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 materials available on record. It is seen that ld. AO has levied the interest for the period when there was no demand. The original demand was of Rs. 52.68 Crores which was raised vide order u/s. 143(3) r.w.s. 144C(13) dated 30/01/2017 which was already paid in the month of February 2017. The details of demand paid as per orginal assessment order are as under:- Particulars Date of Order Amount (Rs.) Demand as per Order u/s 143(3)/144C(13) 30.01.2017 52,68,58,600 less: Payments by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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