TMI Blog2001 (7) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... d under section 234A of the IT Act." 2. The relevant fact may be briefly indicated. The assessee filed return of income for assessment year 1991-92 on 27-10-1993 declaring total income of Rs.18,14,720. The assessee had paid following amounts by way of taxes for assessment year 1992-93 after the end of the accounting year i.e. after 31st March, 1992. ------------------------------------------------------------------------------ Amount (in Rs.) Date ------------------------------------------------------------------------------ 1,00,000 24-4-1992 2,00,000 30-10-1992 3,00,000 16-01-1993 3,50,000 31-03-1993 --------- 9,50,000 ---------------------------------------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d CIT(A) argued that the Assessing Officer had correctly computed the interest under section 234A for late furnishing of return by the assessee and payment of Rs.9,50,000 made by the assessce after the end of the accounting year ie. 31 st March, 1992 cannot be treated as advance-tax and has therefore been ignored by the Assessing Officer while calculating the interest under section 234A. The learned DR submitted that the provisions of section 234A are unambiguous and provide that interest would be charged on the amount of tax on total income as determined on regular assessment 'as reduced by the advance-tax if any, paid and any tax deducted or collected at source". 4. The learned counsel for the assessee, on the other hand, strongly reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication application is therefore liable to be sustained. On this ground itself, we are inclined to accept the appeal of the assessee and reverse the order of the CIT(A). 6. Even on merits, as we have briefly referred above, there is absolutely no doubt in our mind regarding the interpretation of the provisions of section 234A for computation of interest for late filing of the return. The section speaks of two factors which are to be determined namely quantum of delay in furnishing the return and the amount on which interest is to be calculated. The section is quite explicit and unequivocal in providing that interest is to be calculated on the total income as determined under section 143(1) or 143(3) as reduced by the following two payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur of the assessee. Another important distinguishing feature which has to be taken note of is the retrospective amendments introduced by the Finance Act, 2001 in the provisions relating to levy of interest under sections 234A, 234B as well as section 140A. Explanation 4 below sub-section (1) of section 234A(1) has been omitted by the Finance Act, 2001 w.e.f. 1-4-1989. Similarly, in section 140A, the Legislature has inserted Explanation (1A) w.e.f. 1-4-1989 which provides that interest payable under section 234(A) shall be computed on the amount of tax on the total income as declared in the return as reduced by the advance-tax and tax deducted at source. In this new Explanation introduced w.e.f. 1-4-1989, there is no indication regarding tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was that ignoring the payments of taxes made by the assessee after the end of the accounting year would lead to injustice inasmuch as interest under section 234A would be levied even on the tax amounts already paid by the assessee. The learned counsel strongly urged that this approach would be contrary to the compensatory nature of the provisions contained under section 234A. We are not impressed by the contention of the learned counsel. When the words of statute are clear, plain or unambiguous ie. they are reasonably susceptible to only one meaning, the Courts are bound to give effect to that meaning irrespective of its consequence. It has been observed in "Maxwell on the interpretation of Statutes' (12th Edition) at page 205 as under:- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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