TMI Blog2010 (7) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... Kumar Goel J.- This appeal has been preferred by the assessee under section 260A of the Income-tax Act, 1961 (for short, "the Act") against the order dated July 31, 2008 of the Income-tax Appellate Tribunal, Chandigarh in I. T. A. No. 318/Chandi/2008 for the assessment year 2001-02, proposing the following substantial questions of law : "(1) Whether the Income-tax Appellate Tribunal was justified in setting aside the issue of charging of interest under section 234B of the Income-tax Act, 1961 for fresh adjudication to the file of the Commissioner of Income-tax (Appeals) having decided the issue in favour of the appellant in view of the judgment of CIT v. Haryana State Co-operative Supply and Marketing Federation Ltd. [2007] 34 IT R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax was not paid under a bona fide belief, interest under section 234B of the Act was not attracted. On appeal by the Revenue to the Tribunal, the view of the Commissioner of Income-tax (Appeals) was reversed. It was held that the bona fide belief of the assessee to estimate taxability of income could not be valid ground to avoid liability to pay interest under section 234B of the Act on advance tax ultimately found due. 3. We have heard learned counsel for the parties and perused the record. 4. Learned counsel for the assessee submitted that the Tribunal is in error in holding that even if the assessee on a bona fide calculation found that no advance tax was payable, still the liability of interest under section 234B of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction or collection and which is taken into account in computing such total income." 7. The matter is no longer resintegra. This court in Parkash Agro's case [2009] 316 ITR 149 (P H), while considering the effect of amendment to Explanation 1 retrospectively with effect from April 1, 1989, had held that an assessee is liable to pay interest under section 234B of the Act on the amount of income assessed under section 143(1) or 143(3) of the Act and not on the basis of income declared in the return by the assessee. The relevant observations read as under (page 152) : "9. It is no doubt true that prior to the amendment brought by the Finance Act, 2001, which has been made effective retrospectively from April 1, 1989, the interest un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. It is not arbitrary or unreasonable. . ." 9. The judgments relied upon by the assessee are distinguishable as the effect of the amendment by the Finance Act, 2001 was not under consideration in those cases. In view of the clear provision incorporated in the Explanation and the judgment of this court in Parkash Agro's case [2009] 316 ITR 149 (P H), chargeability of interest is beyond question. 10. As regards question No. 3, a perusal of the impugned order shows that there was no ground raised relating to the claim under section 80-IB of the Act before the Tribunal and, therefore, the same does not arise from the said order. 11. Accordingly, we do not find any merit in the appeal. No substantial question of law arises. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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