TMI Blog2015 (12) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... ular assessment as the case may be. Sub- section (4) of Section 234B, however, further provides that where, as a result of an order under rectification or revision etc., the amount on which interest is payable under sub-section (1) is increased or decreased, the interest will also correspondingly increased or decreased. Sub section (4) of Section 234B of the Act thus only pertains to the adjustment of the principal on the basis of any change in the principal liability of the tax of the assessee and has no reference to the two terminal points of time for which the interest liability would arise under sub-section (1). Here, the liability would end on the date of determination of total income under Sub-section (1) of Section 143 of the Act or, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which, interest under Section 234B of the Income Tax Act, 1961 can be admitted. As is well known, Section 234B pertains to interest for default in payment of advance tax. Sub section (1) need to be noted, relevant portion of which reads as under: 234B. Interest for defaults in payment of advance tax. (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 assessee under the provisions of Section 210 is less than ninety percent 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anation 3.In Explanation 1 and in sub-section (3), tax on the total income determined under sub-section (1) of section 143 shall not include the additional income-tax, if any, payable under section 143.] 3. Under sub-section (1) of Section 234B of the Act whenever advance tax paid by the assessee is found to be less than 90 per cent of the assessed tax, the assessee is liable to pay interest at the prescribed rate for every month or part thereof from 1st day of April next, following such financial year upto 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. Such interest liability would be on the amount equal to the assessed tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a later date and relate it to a revisional appellate or a rectification order as is desired by the revenue. 5. We notice that the Tribunal, in the present case, has followed the decision in case of Frightship Consultants P. Ltd. vs. Income Tax Officer reported in [2008] 300 ITR (AT) 96 (Delhi). The Tribunal referred to the decision of Supreme Court in case of Modi Industries Ltd. vs. CIT [1995] 216 ITR 759 (SC) to hold that the term 'regular assessment' would mean the original order of assessment and would not include any other debt of the consequential order which can be treated as the debt of the regular assessment. The Tribunal rejected the revenue's contention on this count making following observations: 14. From a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be increased or reduced accordingly. 16. ... ... ... 17. Now, the other important point which needs to be considered is the terminus date up to which the interest under section 234B of the Act is required to be charged by the Assessing Officer and payable by the assessee. Sub section (4) of section 234B simply provides that if the amount on which interest is payable under sub section (1) is increased or reduced on account of any of the afore specified orders, the interest shall be increased or reduced accordingly. Obviously, the statutory mandate only provides for the quantification of the amount of interest without whispering about the terminus date up to which the interest should be payable. 6. In the result, tax appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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