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2018 (1) TMI 669 - AT - Income TaxCharging interest u/s. 234B(3)/(4) - AO had levied interest u/s 234B from 1st April 1993 upto the date of reassessment u/s 147 which according to AR is patently wrong, because section 234B(3) states about levy of interest from the date of determination of total income u/s 143(1) of the Act up to the date of reassessment or recomputation u/s 147 - Held that:- The section 234B(4) states that if there is any increase or decrease in the income, correspondingly interest shall be increased or reduced accordingly. In the instant case, since reassessment u/s 147 of the Act was completed and in the reassessment the assessed income being higher, the interest is to be calculated as per section 234B(3) of the Income-tax Act, instead of section 234B(4) of the Income-tax Act. The A.O., how he had computed interest u/s 234B of the Act is not very discernable and the period for which the same has been levied is also not mentioned in the order dated 12.10.2010. We are of the view, in the interest of justice and equity, the interest u/s 234B needs to be recalculated afresh. Therefore, we restore this appeal to the files of the A.O. to recalculate interest. The A.O. shall afford a reasonable opportunity of hearing to the assessee. The Assessing Officer shall also take note of the dictum laid down by the order of the Tribunal in the case of MBG Commodities (P.) Ltd. v. DCIT [2016 (8) TMI 82 - ITAT HYDERABAD] while calculating the interest u/s 234B of the Act, afresh. It is ordered accordingly. Appeal filed by the Revenue is allowed for statistical purposes
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