TMI Blog2011 (10) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... of law: Re: ITA No.955/2006 1. Whether the Tribunal was correct in proceeding to take into consideration irrelevant facts as well as the legal position to hold that interest u/s.234A and 234B as worked out by the assessing officer and confirmed by the appellate Commissioner is not correct? 2. Whether the Tribunal failed to appreciate that when considering an application u/s.154 of the Act it was not open to the Tribunal to decide debatable issues? It is noticed from records that ITA 955/2006 was ordered to be clubbed alongwith ITA 949/2006 by order dated 8.11.2010 since it was a common order passed by Tribunal. 3. The assessees made a declaration before the Commissioner of Income Tax, Mysore under Voluntary Disclosure of Income Scheme, 1997 (hereinafter referred to 'VDIS' for brevity) offering undisclosed income. The said declaration was rejected as tax and interest was not paid as per section 67(2) of the Finance Act, 1997 within the stipulated period. Hence, a notice under 148 was issued and assessment was completed by separate orders dated 6.6.2002 and 9.7.2002. On determination of the tax payable interest was levied under sections 234A, 234B and 234C. Assessees f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld have processed the return and issued intimation under sections 143(1)(a) and interest could be charged only under section 234A(3) or 234B(3) since there was no increase in the amount on which interest was payable as a result of order of re-assessment u/s.I47 and no interest can be levied pursuant to such regular assessment. 8. In order to appreciate the contentions raised by the learned advocates, it is necessary to extract some of the relevant provisions pressed into service namely the following: Section 139. Return of income. (1) Every person, (a) being a company (a firm): or (b) being a person other than a company (or a firm), if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax. shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed: Section 234A (1) Where the return of income for any assessment year under sub-section (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 234B. Interest for defaults in payment of advance tax. (1) Subject to the other provisions of this section, where, in any financial year, an assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest, at the rate of [one] per cent (for every month) or part: of a month comprised in the period from the 1st day of April next following such financial year [to the date of determination 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. [Explanation 1. In this section, "assessed tax" means the tax on the total income determined under sub-section (1) of section 143 and where a regular assessment is made, the tax on the total income determined under such regular assessment as reduced by the amount of, (i) any tax deducted or collected at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 153A], on the amount by which the tax on the total income determined on the basis of the reassessment or recomputation exceeds the tax on the total income determined [under sub-section (1) of section 143 or] on the basis of the regular assessment aforesaid. (4) Where, as a result of an order under section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264 or an order of the Settlement Commission under sub-section (4) of section 245D, the amount on which interest was payable under sub-section (1) or sub-section (3) has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and (i) in a case where the interest is increased, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly; (ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded. (5) The provisions of this section shall apply in respect of assessments for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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