TMI Blog2014 (7) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of sub-section (1) of Section 234B - assessment is a regular assessment and not a reassessment – thus, the order of the CIT(A) is upheld – Decided against Assessee. - ITA No.2182/Del/2013 - - - Dated:- 11-7-2014 - SHRI U. B. S. BEDI AND SHRI S V MEHROTRA, JJ. For the Appellant : Sh. V.D. Aggarwal, Advocate For the Respondent : Shri Vivek Kumar, Sr. DR ORDER Per: U B S Bedi: This appeal of the assessee is directed against the order passed by Ld. CIT(A) VIII, New Delhi dated 19.02.2013 relevant to assessment year 2002-03 wherein, following two effective grounds have been raised. 1. Ld. CIT(A) is not justified in law and facts and circumstances of the case in dismissing the appeal on the basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and subsequently the assessment was framed on 13.6.2011 u/s 143(3) read with Sections 147 and 245D(iv) in pursuance to the order of Settlement Commission. The A.O. had charged interest u/s 234B(1) whereas, the assessee contended in his appeal before the first appellate authority that interest should have been charged under the provisions of Section 234B(3) for the period commencing on the day falling at the date of determination of total income u/s 143(1). During the course of appellate proceedings, the assessee has further submitted that since the order had been passed u/s 147, therefore, the interest should have been charged under the provisions of Section 234B(3) and not u/s 234B(1). In support of such contention, the assessee had pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mp (supra) and by placing copies of these decisions, it was pleaded for allowing the appeal of the assessee. 5. Ld. D.R. strongly relied upon the order of Ld. CIT(A) and pleaded for its confirmation. Reliance was placed on the decision of Hon ble Madras High Court in the case of Textile Dye-Chem Corpn. Vs ACIT as reported in (2013) 35 Taxmann.com 467 to plead for confirmation of the order of Ld. CIT(A). 6. None appeared on behalf of the assessee on second occasion when case was fixed for clarification. After hearing the Ld. DR and on perusing the material available on record, we are adjudicating the matter on merits. 7. We have heard the Ld. DR and perused the material on record and have gone through the orders of authorities below ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of total income under sub-section (1) of section 143 before the regular assessment got completed u/s 143(3), the A.O. found that the advance tax paid is less than 90% of the assessed tax so, he levied interest u/s 234B(1) of the Act. Whereas, the assessee s contention is that the provisions of Section 234B(3) was to be applied and not of section 234B(1). So, it would be apt to reproduce the relevant provision of Section 234B(1), Explanation 2 and 234B(3) which are as under: [Interest for defaults in payment of advance tax. 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 ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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. 7.2 The contention of the revenue is that, if the return is accepted and demand is raised by processing the return u/s 143(1), the interest is to be charged u/s 234B(1) and the same is for the period commencing from first day of the financial year following the previsions year during which, advance tax was paid. According to Ld. D.R., pursuant to survey, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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