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2012 (7) TMI 518 - HC - Income TaxChallenge against levy of interest u/s 234B - notice u/s 148 was issued to the assessee for the excess deduction claimed under Section 80HHC and 80-I - assessee contented that the assessment framed by the AO u/s 143(3)/147 was the first assessment - Held that:- The statutory provision contained in Explanation 2 to Section 234B that where an assessment is made for the first time in pursuance to proceedings under Section 147 it shall be regarded as a regular assessment for the purposes of Section 234B and the decision of the Apex Court in K. Govindan & Sons' case (1998 (7) TMI 61 - KERALA HIGH COURT ) which was binding under Article 141 of the Constitution would render the order ineffective and would not take away the right of the revenue to charge interest under Section 234B(4). Thus interest u/s 234B was correctly charged in the assessment order passed u/s 143(3)/147 and therefore it could be subsequently enhanced on completion of set aside assessment. Section 115JB is a self-contained code pertaining to MAT which imposed liability for payment of advance tax on MAT companies and therefore, where such companies defaulted in payment of advance tax in respect of tax payable under Section 115JB, it was liable to pay interest u/s 234B and 234C. Thus, it can be concluded that interest u/s 234B and 234C shall be payable on failure to pay advance tax in respect of tax payable under Section 115JA/115JB - against assessee.
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