TMI Blog2011 (2) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... computed on the amount by which the tax on the total income determined on the basis of the assessment under section 153A exceeds the tax on the total income determined under sub-section (1) of section 143 on the return filed in response to the notice issued under section 153A. In regard to the levy of interest under section 234C, there is no provision similar to section 234A(3) or section 234B(3) in the said section. - ITA NOS. 520 TO 525/MDS/2010 - - - Dated:- 4-2-2011 - Shri Abraham P. George, Accountant Member and Shri George Mathan, Judicial Member Appellants by : Shri Philip George Respondent by : Shri P.B. Sekaran ORDER Per George Mathan, Judicial Member These are appeals filed by the assessees against the orders of the learned CIT(Appeals)-I, Madurai in appeal Nos. 0200 to 0205/08-09 and 0196 to 0199, dated 22-2-2010 for the assessment years 2000-01 to 2005-06 and 2000-01, 2001-02, 2004-05 and 2005-06 respectively. As the issues in these appeals are identical, the same are being disposed of by this common order. 2. Shri Philip George, Advocate represented on behalf of the assessees and Shri P.B. Sekaran, CIT-DR represented on behalf of the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed a divergence of opinion which showed that the issue was debatable and consequently the provisions of section 154 could not be invoked. The learned authorised representative drew our attention to the provisions of section 154 of the Act to say that what was expected under section 154 was a mistake apparent from the record. It was the submission that section 154 did not specify as to what constituted a mistake. As the issue was debatable, the provisions of section 154 could not be invoked. 5. In regard to the quantum of interest it was submitted by the learned authorised representative that as per the provisions of sections 234A and 234B the interest was liable to be computed from the expiry of the time limit provided in the notice under section 153A in view of the provisions of sections 234A(3) and 234B(3) of the Act. It was the submission that the Assessing Officer had levied the interest from the date of the original return under section 139(1) which was not permissible. It was the further submission that while computing the interest the Assessing Officer did not give credit for the tax adjusted on 13-2-2007. It was the submission that in the assessment order also in the calc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeds the tax on the total income determined under sub-section (1) of section 143 or on the basis of the earlier assessment aforesaid." Section 234B (3) reads as follows: "234B(3). Where, as a result of an order of reassessment or recomputation under section 147 or section 153A, the amount on which interest 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) of section 143 and where a regular assessment is made as is referred to in sub-section (1) following the date of such regular assessment and ending on the date of the reassessment or recomputation under section 147 or section 153A, on the amount by which the tax on the total income determined on the basis of the reassessment or recomputation exceeds the tax on the total income determined under sub-section (1) of section 143 or on the basis of the regular assessment aforesaid." 8. A perusal of the provisions of section 153A(1)(a) of the Act clearly shows that the Assessing Officer is to issue noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, if any, relating to any assessment year falling within the period of six years referred to in section 153A(1) pending on the date of the initiation of the search shall abate. In such a situation obviously once a notice under section 153A is issued all past assessments and reassessments pending as on the date of the initiation of the search would no more survive. Further, in view of the provisions of section 153A(1)(a) as a return filed in response to the notice under section 153A is to be treated as a return under section 139, the section 143(1) referred to in section 234B(3) would have to be considered as the intimation in relation to such return which has been filed in response to a notice under section 153A. This view also finds support because the intimation has to be issued within 12 months from the date of filing the return and as per the second proviso to section 153A, the assessment and reassessment proceedings which are pending at the time of initiation of the search have abated and as per the provisions of section 153A the return filed in response to such notices becomes by act of the provisions itself a return under section 139(1) which effaces the original return. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est is compensatory in nature. The method of computation of the interest is specifically provided in the sections 234A(3) and 234B(3) in the case of assessments under section 153A and section 234C. Non-application of a particular provision of the Act which is undisputedly is a mistake apparent from the record. The non-application of a specific provision being mistake apparent from record, we are of the view that the finding of the learned CIT(A) in holding that the Assessing Officer was right in invoking the provisions of section 154 is on a right footing and does not call for any interference. Further there can be no two views in regard to the levy of interest under sections 234A, 234B and 234C, especially when the provisions of the said section themselves specifically provide for the levy. In the circumstances we are of the view that the Assessing Officer was right in invoking the provisions of section 154 for rectifying the mistake of the non-levy of interest under sections 234A, 234B and 234C of the Act in the original assessment. 13. In the result, the appeals of the assessees are partly allowed. 14. The order was pronounced in the court on 4-2-2011. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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