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2019 (6) TMI 1093 - AT - Income TaxExcess interest levied u/s 234A - whether interest u/s 234A could have been charged only till the time tax liability was outstanding? - due date of return 15.10.2010 - Date of tax deposited 24.3.2014 - Date of voluntary return filed 7-5-2014 - filing of return in response to notice u/s 148 23-6-2017 - HELD THAT:- As in Priti Prithwala vs. ITO [2003 (3) TMI 743 - ITAT MUMBAI] on similar ground of appeal held that in section 234A, the word “regular assessment” are used in the context of computation. It does not show that the order passed under section 143(3)/144 shall be substituted by section 147. In term of section 234A(1)(a)(b), the period for which interest liability is calculated is the period between the date on which return was due to be filed and the ending on the date, the same is actually furnished and when no return is furnished, ending on the completion of assessment under section 144. Section 234A(1)(b) contemplates the situation where no return has been furnished, in such a case, the period prescribed is ending on the date of completion of the assessment. Once the assessee conceded his liability to pay interest under section 234A, there was no point in going further into the matter and exemption whether interest was not liable to pay. As assessee submits that the assessee could not be made liable to pay interest for the period during which it was not possible on their part to file the return. Therefore, we direct the Assessing Officer to re-compute the interest up to the date of filing of return. Hence, Ground No. 3 of the appeal is allowed. Interest u/s 234B - HELD THAT:- We find the interest u/s 234B is chargeable from the first day of assessment year till the date of assessment year on the amount of assessed tax due ( i.e. tax payable – TDS) from time to time. We direct the Assessing Officer to compute the interest under section 234B as under:- From 1.4.2010 till Marcfh 2014 on the assessed tax due which is considered as X Tax payable – TDS (+) X = Y Then calculate interest from 1.4.2014 till the date of completion of assessment on the amount of Y. We direct the assessing officer to recompute the interest as stated above.
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