9911796707
TMI Blog1999 (10) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... act that charging of the interest under s. 234B is mandatory." 2. We have heard the learned Departmental Representative for the Revenue. None appeared on behalf of the respondent-assessee. Hence we proceed to decide the appeal ex parte under r. 24 of the IT (Appellate Tribunal) Rules, 1963. 3. Stated briefly, the relevant and material facts for the disposal of these grounds of appeal are stated as under. 4. At the time of framing the assessment, interest under s. 234B of the Act was charged to the extent of Rs. 17,610. An application under s. 154 of the Act was moved requesting the AO to delete this interest contending that there was no liability to pay advance tax on the winning of a Maruti car in the draw held on 21st Feb., 1990. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the presence of witnesses. He was informed on 2nd April, 1990, regarding the settlement of dispute in his favour and car was handed over subsequently. Thus, there was no finality about the winning of the Maruti car as a prize before 31st March, 1990, and hence liability to pay advance tax under s. 234B of the Act was not called for. 6. The learned CIT(A) while allowing the appeal of the assessee directed the AO to make the necessary rectification and delete the interest charged under s. 234B of the Act and made the following observations: "1.3 I have carefully considered the submissions made before me. Admittedly the income assessed is winning from lottery on which tax is required to be deducted at source, as per provisions of s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... car won in prize during the assessment year in question and has agreed to pay tax on the same. So the provisions of s. 208 of the IT Act comes into play which have not been taken into consideration by the CIT(A) while disposing of the appeal of the assessee. Sec. 208 reads as under: "208. Advance tax shall be payable during a financial year in every case where the amount of such tax payable by the assessee during that year, as computed in accordance with the provisions of this chapter, is one thousand five hundred rupees or more." 9. It means that s. 208 in its present form, which came into effect from 1st April, 1988, for the asst. yr. 1988-89 onwards as the advance tax is payable during the financial year in every case where the ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the month comprised in the period from the 1st day of April of the assessment year to the date of determination of total income under sub-s. (1) of s. 143 and where a regular assessment is made, upto the date of regular assessment." 12. The combined reading of these sections makes it apparently clear that the AO has rightly charged the interest under s. 234B on account of the default by the assessee for non-determination of advance tax and further he was also justified in rejecting the application moved by the assessee under s. 154 of the Act in which he prayed for the deletion of interest under s. 234B of the Act imposed by the AO. 13. In the result, we find merit in the grounds of appeal of the Revenue and consequent upon t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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