TMI Blog2009 (12) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... tax payable with reference to the revised assessment completed under section 147 of the Act - Appeal is dismissed - 1611/09 - - - Dated:- 2-12-2009 - RAMACHANDRAN NAIR C. N. and MOHANAN V. K. JJ. For Appellant - P. Balakrushnan. For Respondent - P.K.R. Menon and Jose Joseph. Judgment: C. N. Ramachandran Nair J.- The question raised in the appeal filed by the assessee is whether the Tribunal was justified in sustaining the demand of interest under section 234B(3) of the Income-tax Act, pursuant to income escaping assessment completed under section 147 a second time for the assessment year 1999-2000. The assessee a banking company filed a loss return for the assessment year 1999-2000 and the Assessing Officer while ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in short fall in advance tax. The next contention raised is that when no interest is levied under section 234B(3) in the first round of revision of assessment made under section 147 of the Act, it cannot be levied in the second revision of assessment made under section 147 of the Act. In other words, according to counsel for the appellant, section 234B(3) only provides for enhanced demand of interest originally charged under section 234B(1) and in order to sustain the levy in the second round of revision of assessment effected under section 147 interest should have been levied under the very same provision in the earlier assessment also completed under section 147. Standing counsel appearing for the respondent on the other hand con-tended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the total income determined under such regular assessment as reduced by the amount of,- . . . Explanation 2.-Where in relation to an assessment year, an assessment is made for the first time under section 147 or section 153A, the assessment so made shall be regarded as a regular assess-ment for the purposes of this section. (3) Where, as a result of an order of reassessment or recompu-tation under section 147 or section 153A the amount on which inter-est was payable under sub-section (1) is increased, the assessee shall be liable to pay simple interest at the rate of one per cent. for every month or part of a month comprised in the period commencing on the day following the date of determination of total income under sub-section (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is clear beyond doubt from the above provisions that interest payable under section 234B(1) could be levied even in a reassessment completed under section 147 on excess short fall of advance tax, consequent to increase in demand of tax pursuant to revision of assessment under section 147. In this case, the first assessment which is in the form of intimation under section 143(1)(a) led to a refund of above Rs. 8 crores to the assessee, and, therefore, no interest could be demanded under section 234B(1). Therefore, obviously interest could be levied under section 234B(3) when assessment was revised under section 147 on January 28, 2004, which led to a demand of tax on a positive income of above Rs. 16 crores as against loss of around Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 5. The next question to be considered is whether the omission of the officer to levy interest under section 234B(3) in the first revision of assessment completed under section 147 will deprive him of his authority to levy inter-est under the very same provision when assessment for the very same assessment year is revised a second time under section 147. We do not find any significance about the number of reassessments carried out under sec-tion 147 for the purpose of levy of interest under section 234B(3). In fact, interest payable under this provision is for the increase in short fall of advance tax with reference to the original assessment and it is levied for the commencing from the date of completion of original assessment till da ..... X X X X Extracts X X X X X X X X Extracts X X X X
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