TMI Blog1997 (12) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... ment was completed under section 143(3) on 3-3-1994. The Assessing officer levied interest under section 234-B upto 3-3-1994 which is the date of regular assessment under section 143(3) of the Act. The assessee by letter dated 15-4-1994 requested the Assessing Officer to levy such interest only upto the date of intimation under section 143(1)(a) of the Act and not upto the date of assessment under section 143(3) of the Act. The Assessing Officer rejected the plea of the assessee. The matter was taken up in appeal. The learned Dy. CIT(A) following the order of the Tribunal in the case of ITO v. V.S. Madasamy [I.T. Appeal No. 1723 (Mad.) of 1993] for the assessment year 1990-91 decided the issue in favour of the assessee. The Revenue is aggri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmination 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." Section 234B was inserted by the Taxation Laws (Amendment) Act, 1987 with effect from 1-4-1989. The section was amended by the Direct Tax Laws (Amendment) Act, 1989 with effect from 1-4-1989. In the section, as originally enacted, interest was to be charged "from 1st day of April next following such financial year", "to the date of regular assessment". The words "to the date of regular assessment" were substituted by the words "to the date of dete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d where a regular assessment is made, till the date of such assessment." This legislative intention has been achieved by the substitution of the word "and" for "or" in sub-section (1). As a result of the amendment, the defaulting assessee shall be liable to pay interest for default in payment of advance tax till the determination of total income under section 143(1) and where regular assessment is made till the date of such regular assessment. 6. In my view, the terminus period for charging interest under section 234B is the date of assessment under section 143(3) where there is regular assessment. Similar view has been expressed by the Special Bench of the Settlement Commission in Sahitya Mudranalaya (P.) Ltd., In re [1995] 79 Taxman 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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