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2015 (12) TMI 628 - GUJARAT HIGH COURTInterest u/s 234B - upto which date interest under Section 234B can be admitted - ITAT directing the Assessing Officer to charge interest u/s 234B after giving effect to the order of the Tribunal till the date of order of original assessment - Held that:- Section 234B has two parameters. One is the principal on which such interest would be computed and the other is the period, during which, such interest liability would arise. Two terminal points of the liability are the 1st of April next following the financial year in question and the date of determination of total income under Section 143(1) assessment or the date of regular assessment as the case may be. Sub- section (4) of Section 234B, however, further provides that where, as a result of an order under rectification or revision etc., the amount on which interest is payable under sub-section (1) is increased or decreased, the interest will also correspondingly increased or decreased. Sub section (4) of Section 234B of the Act thus only pertains to the adjustment of the principal on the basis of any change in the principal liability of the tax of the assessee and has no reference to the two terminal points of time for which the interest liability would arise under sub-section (1). Here, the liability would end on the date of determination of total income under Sub-section (1) of Section 143 of the Act or, in case of regular assessment, the date of such assessment. In view of such clear language of sub-section (1) of Section 234B of the Act, there is no scope for extending such liability to a later date and relate it to a revisional appellate or a rectification order as is desired by the revenue. Tribunal, in the present case, has followed the decision in case of Frightship Consultants P. Ltd. vs. Income Tax Officer reported in [2007 (5) TMI 259 - ITAT DELHI-A] referring to the decision of Supreme Court in case of Modi Industries Ltd. vs. CIT [1995 (9) TMI 324 - SUPREME Court] to hold that the term 'regular assessment' would mean the original order of assessment and would not include any other debt of the consequential order which can be treated as the debt of the regular assessment - Decided against revenue
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