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TMI Blog2017 (6) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... e?" We notice that the Revenue has proposed another question, which reads as under: "2 Whether on the facts and circumstances of the case and in law, the ITAT was justified in deleting interest u/s. 234B and 234C of the I.T.Act by holding that same would not have been charged on the assessee on account of increase in total income resulting from retrospective amendment to section 43(6) of the Act without appreciating that charging of interest u/s. 234B and 234C of the I.T Act is mandatory?" 2 This question relates to the liability of the assessee to pay interest on short fall of payment of advance tax. It is undisputed that such short fall occurred due to the liability, which arose on account of retrospective amendment. Explanation 6 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x shall be payable in advance during any financial year in accordance to the provision of Sections 208 to 219 in respect of total income of the assessee, which would be chargeable to tax for the assessment year immediately following the financial year and such income would be referred to as current income. Section 208 of the act provides for condition for liability to pay advance tax and requires an assessee to pay such tax if tax liability exceeds Rs. 10,000/Section 209 of the Act provides for computation of advance tax. 5 In terms of Section 207 of the Act, thus, advance tax is payable in respect of total income of the assessee, which would be chargeable to tax in the assessment year immediately following the financial year in question. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the then provision of law was nil, wecannot conceive of any "advance tax" which in essence is payable within the last day of the financial year preceding the relevant assessment year as provided in sections 207 and 208 or within the dates indicated in section 211 of the Act which inevitably falls within the last date of the financial year preceding the relevant assessment year. Consequently, the assessee cannot be branded as a defaulter in payment of advance tax as mentioned above. 14 At this stage, we may profitably rely upon the observations of the Supreme Court in the case of Star India P.Ltd. v. CCE reported in [2006] 280ITR321(SC), strongly relied upon by Mr.Bajoria, where the apex court in the context of imposition of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant assessment year as such the question did not arise in the said case before the Supreme Court. 16 It appears that the learned Tribunal has not at all considered the aforesaid aspect as to the liability of the assessee to make payment of the advance tax on the last day of the financial year, i.e.,March 31,2001, when its book profit was nil according to the then law of the land. The various decisions of the other High Courts and the Tribunals relied upon by the Tribunal did not effectively consider the question whether even in a case like the present one where on the last date of the financial year preceding the relevant assessment year, the assessee had no liability to pay advance tax, he would be nevertheless asked to pay interest i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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