TMI Blog2012 (11) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... r section (3) of section 140A. Undisputedly notice under section 156 was given to the assessee after final assessment order dated 24th March, 1992. The authorities were, thus, right in holding that the assessee in the present case was liable to pay interest from the date of the order dated 24th March, 1992. - Decided against the revenue. - Tax Appeal No. 8 of 2002 - - - Dated:- 7-11-2012 - MR. PRAKASH TATIA, AND MRS. JAYA ROY, JJ. For the Appellant/Petitioner: M/s. D. Roshan, Sr.S.C(IT), R.Kumari For the Respondent: M/s. B. Poddar, Snr. Adv., M.K. Choudhary D.Poddar, P.Poddar, A.Sinha By Court Heard learned counsel for the parties. 2. We are not going into the details of facts, in view of the reason that the question of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions of law: (A) Whether on the facts and in the circumstances of the case, the ITAT was justified in holding that the original demands had got completely wiped off during the intervening period firstly by way of appellate order dated 29.1.1985 by the Commissioner of Income Tax (Appeals) and secondly by way of setting aside the further orders passed consequent thereto from time to time and no demand was pending during the period from 1.1.1985 to 24.3.1992? (B) Whether on the facts and in the circumstances of the case, the ITAT was justified in holding that interest under section 220(2) could not have been charged upto 24.3.1992 when liability to pay balance self-assessment tax arose on 12.1.1984, the date on which the Assessee filed r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it is clear from the facts of the case that the assessee assessed himself to be liable to pay tax and interest on his income to the tune of Rs.1,96,91,399/and on 12th January, 1984 as admitted in his revised returns of income, he did not pay interest over the said amount in view of his revised returns on 12th January, 1984. Therefore, the assessee was statutorily an assessee deemed to be an assessee in default in respect of tax and interest amount which he did not pay. At the cost of repetition, it may be stated that, according to the learned counsel for the appellant, the assessee was defaulter in view of subsection (3) of section 140A from the time when he was supposed to pay tax and interest and he did not pay the interest and theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s accordingly along with the proof of payment of tax and if there is delay, with proof of payment of interest. It is submitted that in the case of self-assessment by the assessee but crystallizing tax liability of the assessee by final order, the interest can be levied under section 220(2) of the Act of 1961 only after service of demand notice demanding specified amount, which the assessee is required to pay within the stipulated period of 30 days and in default thereof, he is liable to pay the interest. It is further submitted that the appellate authority and the Tribunal rightly held that the assessee is liable to pay interest from the date of final order passed by the appellate authority on 24th March, 1992. Learned counsel for the respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of subsection (1) of section 140A, then he will be deemed to be an assessee in default in respect of the tax or interest or both, which remained unpaid. And it has also been provided in subsection (3) of section 140A that all the provisions of this Act shall apply accordingly, obviously treating such assessee to be a defaulter defaulter in payment of tax and interest. In spite of declaring such assessee to be a defaulter, in the same section 140A liability of the interest has not been created on such unpaid amount and Explanation appended to section 140A only provided that the amount so paid by the assessee under section 140A shall be adjusted against tax liability and excess shall be against interest liability. For creati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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