9911796707
TMI Blog2011 (1) TMI 1187X X X X Extracts X X X X X X X X Extracts X X X X ..... 34B(1) for the period stated therein, the case of the assessee is that interest could be levied under section 234B(3) for the limited period specified therein. 2. We have heard learned Standing Counsel appearing for the Revenue and Shri.Arun Raj learned counsel appearing for the respondent assessee. 3. The respondent filed Income Tax returns for the assessment years 2001-02 and 2002-03 on the due dates i.e. on 30th October of the assessment years. Both the returns were processed and proceedings issued under section 143(1) within the time provided under the Act. Since there was short payment of advance tax for the assessment year 2001 -02 interest under section 234B(1) was charged for the period specified therein, on which th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the returns under section 143(1) and so much so interest is payable under section 243B(1) and not under section 234B(3) as claimed by the assessee. This order was challenged in appeal. Though the first appellate authority dismissed the appeal, the Tribunal held in favour of the assessee against which the Revenue has filed these appeals. 4. The question to be decided is the application and meaning of sections 234B(1) and 234B(3) of the Act, and therefore, we extract hereunder these provisions for easy reference:- "234B(1) Subject to the other provisions of this section, where, in any financial year, an assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under sub-section (1) of section 143 or) on the basis of the regular assessment aforesaid." 5. The contention of the Revenue is that in all cases, where income returned is accepted and demand is raised by processing the return under section 143(1), interest is to be charged under section 234B(1) and the same is for the period commencing from the first date of the financial year following the previous year during which advance tax was payable. According to the learned Standing Counsel, pursuant to the search, notice was issued to the assessee under section 153A, and by virtue of the operation of Clause (a) of section 153A(1) return filed pursuant to the notice under the said provision will be treated as the return filed under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompleted under section 143(1) interest is to be charged for the periods provided under section 234B(1) of the Act. Further, if the first assessment itself is income escaping assessment made under section 147 or under section 153A, then such assessment will be treated as regular assessment and interest for non-payment or short payment of advance tax in such cases will be payable under section 234B(1) of the Act. However when an original assessment completed under section 143 is revised either under section 147 or under section 153A, then interest for non-payment or short payment of advance tax is payable only for the period mentioned in section 234B(3) of the Act, which provides for interest from the date of completion of regular assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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