TMI Blog2016 (7) TMI 945X X X X Extracts X X X X X X X X Extracts X X X X ..... h tax and interest thereon have to be paid under the provisions of this Act had the income been disclosed in the application but was declared in the return of income before the AO on the date of application. The words referred in 245C clearly shows that the date of application for settlement will relate back to the filing of the return before the AO and, therefore, the tax and the interest thereon is required to be calculated in the manner provided under section 234B. The section 234B(1) clearly mentioned that if there is a difference in advance tax or the tax, then the interest is required to be paid from 1st April following next financial year.- Decided against assessee - ITA No. 605 & 606/JP/2015 - - - Dated:- 28-4-2016 - SHRI T.R.MEENA, AM SHRI LALIET KUMAR, JM For The Assessee : Shri P.C. Parwal (C.A.) For The Revenue : Shri Kailash Mangal (JCIT) ORDER PER SHRI LALIET KUMAR, J.M. These are two appeals filed by the assessee against the order of ld. CIT (Appeals), Alwar dated 29.04.2015 for the A.Y. 2003-04 04-05. The ground raised by the assessee is as under :- ITA No. 605/JP/2015 The ld. CIT (A) has erred on facts and in law in uphol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by any appellate authority. Therefore, AO was justified in computing the interest u/s 234B of the IT Act. I do not find any infirmity in the order of the AO on this account. 4. Now the assessee is in appeal before us. 4.1. The ld. A/R submitted that the following dates are relevant for deciding the issue :- Particulars A.Y. 2003-04 A.Y. 2004-05 Date of filing of return u/s 139 27.11.2003 01.11.2004 Date of intimation u/s 143(1) 28.05.2004 31.05.2005 Date of Notice u/s 153A 7.9.2006 7.9.2006 Filing of return in response to notice u/s 153A 12.10.2006 12.10.2006 Date of filing of settlement petition 22.12.2006 22.12.2006 Date of deemed admission u/s 245D(1) 31.07.2007 31.07.2007 Date of order passed u/s 245D(4) 7.2.2013 7.2.2013 He submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orities below. 4.3. We have heard rival contentions and perused the material on record. The short controversy involved in the present appeal is whether the assessee is liable to pay the interest from 01.04.2003 (i.e. from the 1st day of April next following such financial year) or from the date of processing i.e. 28.05.2004 (date of intimation under section 143(1) in terms of section 243B(3) of the IT Act in respect of ITA No. 605/2015. Before we decide the issue, we reproduce the relevant provisions hereunder : Section 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 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 1st 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 reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a case where (A) The applicant is related to the person referred to in clause (i) who has filed an application (hereafter in this sub-section referred to as specified person ); and (B) The proceedings for assessment or re-assessment for any of the assessment years referred to in clause (b) of sub-section (1) of section 153A or clause (b ) of sub-section (1) of section 153B in case of the applicant, being a person referred to in section 153A or section 153C, have been initiated, the additional amount of income-tax payable on the income disclosed in the application exceeds ten lakh rupees, (ii) In any other case, the additional amount of income-tax payable on the income disclosed in the application exceeds ten lakh rupees, and such tax and the interest thereon, which would have been paid under the provisions of this Act had the income disclosed in the application been declared in the return of income before the Assessing Officer on the date of application, has been paid on or before the date of making the application and the proof of such payment is attached with the application. As per section 245C, the assessee is required to make an application for settlemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest thereon as if such income would have been disclosed and declared in the return of income. If the assessee has declared/disclosed the same income ( income disclosed in the settlement application), then it would relate back to the date of filing of return of income. The contention of the assessee that the case of the assessee would fall under section 243B(3), in our view is not applicable. In fact, the provisions of section 245C makes it abundantly clear that such tax and interest thereon have to be paid under the provisions of this Act had the income been disclosed in the application but was declared in the return of income before the AO on the date of application. The words referred in 245C clearly shows that the date of application for settlement will relate back to the filing of the return before the AO and, therefore, the tax and the interest thereon is required to be calculated in the manner provided under section 234B. The section234B(1) clearly mentioned that if there is a difference in advance tax or the tax, then the interest is required to be paid from 1st April following next financial year. In view thereof, the appeals of the assessee are dismissed. 5. In the res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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