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2014 (7) TMI 403 - KARNATAKA HIGH COURTLevy of interest - assessee contended that difference in the tax liability on return filed and as assessed on reassessment was less than five per cent hence no interest can be levied - Held that:- The mistake of filing of incorrect turnover was detected and corrected only by reassessment order and not by the assessee having undertaken voluntary correction of the return within three months period - even understanding a situation within section 20 36(1) of the Act with reference to section 72(2) of the Act cannot be under stood as one importing the requirement of difference being more than five per cent for levy of penalty as an essential condition for levy of interest under section 36(1) of the Act also, then it is a fortiori so for the purpose of section 36(2)(c) of the Act. We say so for the reason that the two provisions are independent and in fact levy of interest is not made subject to levy of penalty and therefore it cannot be contended that it is only when penalty is levied, interest under section 36 can be levied. In our understanding and as submitted by learned Additional Government Advocate, the word "subject to" under section 36(1) of the Act can only be to say that levy of interest is in terms of section 36 of the Act notwithstanding levy of penalty under section 72 of the Act. In situation where revised return has been filed within the margin period of three months and the tax also paid, the levy of interest under section 36(1) of the Act being not attracted is in no way affected because of the situation where levy of penalty under section 72 of the Act is attracted - revision petitions dismissed - Decided against assessee.
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