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2016 (7) TMI 945 - AT - Income TaxChargeability of interest u/s 234B - whether the assessee is liable to pay the interest from 01.04.2003 (i.e. from the 1st day of April next following such financial year) or from the date of processing i.e. 28.05.2004 (date of intimation under section 143(1) in terms of section 243B(3) of the IT Act - Held that:- In the present case, settlement petition was filed and thereafter the petition was deemed to have been admitted on 31.07.2007 and thereafter the settlement order was passed on 07.02.2013. But at the time of filing of the settlement petition, the assessee was required to deposit the tax along with interest thereon as if such income would have been disclosed and declared in the return of income. If the assessee has declared/disclosed the same income ( income disclosed in the settlement application), then it would relate back to the date of filing of return of income. The contention of the assessee that the case of the assessee would fall under section 243B(3), in our view is not applicable. In fact, the provisions of section 245C makes it abundantly clear that such tax and interest thereon have to be paid under the provisions of this Act had the income been disclosed in the application but was declared in the return of income before the AO on the date of application. The words referred in 245C clearly shows that the date of application for settlement will relate back to the filing of the return before the AO and, therefore, the tax and the interest thereon is required to be calculated in the manner provided under section 234B. The section 234B(1) clearly mentioned that if there is a difference in advance tax or the tax, then the interest is required to be paid from 1st April following next financial year.- Decided against assessee
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