TMI Blog2011 (7) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... sment or recomputation u/s 147 - Therefore, the interest is to be calculated from 24-6-1991, the date on which determination of tax was made u/s (1)(a) of the Act - To that extent, the order passed by the authorities is illegal and requires to be set aside - Decided in favour of assessee. - 65 AND 66 OF 2005 - - - Dated:- 18-7-2011 - N. KUMAR AND RAVI MALIMATH, JJ. A. Shankar and N. Lava for the Appellant. M.V. Seshachala for the Respondent. JUDGMENT N. Kumar, J. ‑ These appeals are by the assessee against the order of the Tribunal which has upheld the order passed by the Commissioner as well as the Assessing Authority who have held that assessee is liable to pay interest under section 234B of the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on'ble High Court of Karnataka in the case of CIT v. H.V. Mirchandani [1986] 161 ITR 800/28 Taxman 596, dismissed the appeal. Aggrieved by the said order, the assessee has preferred this appeal. 4. These appeals were admitted on 10-11-2010 to consider the following substantial questions of law: (i) Whether in the facts and circumstances of the case the Tribunal was right in law in holding that in spite of their admission that intimation under section 143(1)(a) in an order, the Tribunal erred in holding that the provisions of section 234B are applicable? (ii) Whether in the facts and circumstances of the case, the order of reassessment made under section 147 is assessment made for the first time as envisaged in Explanation 2 to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than ninety per cent of the assessed tax. 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 from the is day of April next following such financial year to the date of determination of total income under sub-section (1) of section 143 and where a regular assessment is made, to the date of such regular assessment, on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid fails short of the assessed tax. Explanation 1. ** ** Explanation 2. Where, in relation to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment is treated and from what date to what date the interest is payable on such advance tax? 9. That is what is provided in sub-section (3) of section 234B. It reads as under : "Where, as a result of an order of reassessment of 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 143 or from that day till the date of regular assessment. If in a given case, there is no determination of tax under sub-section (1) of section 143 or regular assessment and the assessment is made for the first time under section 147, such assessment is also treated as a regular assessment and interest is payable from the first day of April next following till the date of assessment order. But if proceedings under section 147 is initiated in a case where there is determination of tax under sub-section (1) of section 143 or where a regular assessment order is passed under sub-section (3) of section 143, then, the order passed under section 147 is treated as an order of reassessment or recomputation. In the case of order of reassessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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