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2017 (3) TMI 798 - AT - Income TaxLiability towards interest u/s 234-A & 234-B - assessment u/s 153A - whether interest liability on tax under s.234A & 234B can be fastened on the assessee on the income already assessed in the course of regular assessment in the garb of fresh proceedings under s.153A of the Act when the income assessed earlier remains unaltered in section 153A proceedings also? - Held that:- A bare reading of the text of both the sections, similarly worded unravel that the liability towards interest under s.234-A & 234-B would arise under s.153A only on the amount by which the tax on total income determined under s.153A exceeds tax amount on total income determined in any earlier assessment. Therefore, in our view, the fresh liability towards interest under s.234A & 234-B shall arise in pursuance of order under s.153A of the Act only upon increase in the total income determined qua the earlier assessment. The earlier regular assessment in the instant case survives and does not stands abated. The interest liability already determined thereon under s.234-A & 234-B survives and is an enforceable recovery as per law. Merely because fresh assessment has been carried out pursuant to search, the interest liability on the assessed income earlier cannot resurface on the same amount already assessed earlier in view of the scheme of the Act. Resultantly, in our view, liability towards interest under s.234-B & 234-C could not have been raised without disturbing the assessed income assessed earlier. As a result, we are inclined to agree with the case of the assessee seeking relief towards interest liability under s.234A & 234-B of the Act. - Decided in favour of assessee
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