TMI Blog2018 (1) TMI 1112X X X X Extracts X X X X X X X X Extracts X X X X ..... There could be no levy of interest under Section 234B(3), since the advance tax on the computation made on re-assessment was, in fact, paid by the assessee in the close of the previous year to the assessment year. Interest paid to the assessee in ordering refund - Held that:- As assessee had obtained a refund of the entire tax paid with interest. Subsequently, a re-assessment was made and the liability to pay advance tax arose again on 31-03-1992; which had been paid but later refunded. We, hence, direct the Department to compute the interest paid to the assessee, in ordering refund, for the amount of ₹ 4,59,043/-, on which a demand would be raised, which would be paid by the assesee. The additional question raised is answered in favour of the Revenue and against the assessee. - ITA.No. 94 of 2008 - - - Dated:- 11-1-2018 - K.VINOD CHANDRAN ASHOK MENON, JJ. Appellant By: Advs. Sri. P.K.R. Menon, Sr. Counsel, GOI (Taxes) Sri. George K. George, SC For IT Sri. Jose Joseph, SC, For Income Tax Respondent By: SR. Adv. Sri. E.K. Nandakumar Sri. P. Gopinath By Adv. Sri. P. Benny Thomas J U D G M E N T Vinod Chandran, J. The Revenue is in appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax payment required and the tax so paid and TDS were liable to be refunded. A re-assessment was proposed under Section 147 and finalised by order dated 20-10-1997, recomputing the total income at ₹ 80,55,145/-. There was a payment of ₹ 3,97, 252/- on 03-08-1998 and 29-09-1998. In an appeal the CIT recomputed the total income of the assessee at ₹ 5,36,410/-. By that time, ₹ 8,76,426/- was refunded on 04-03-1996, which included the advance tax TDS of ₹ 5,12,984/- the refund adjusted of ₹ 1,10, 615/- and interest of ₹ 2,52,828/-. On further orders passed on 10-03-1999, a further refund of ₹ 1,72,705/- was made. 4. A further re-assessment proceedings initiated, computed the total income of the assessee at ₹ 9,36,870/-. Eventually, these last re-assessments after challenge before the Tribunal and the High Court, resulted in a computation of a total income of ₹ 23,32,002/-. In giving effect to the said order, the Assessing Officer worked out the total demand as follows:- Income tax due thereon Rs.4,09,860/- Add: Sur-charge @ 12% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est under Section 234B(1). Section 147, being a machinery provision, when reassessment was made, the total income was determined at ₹ 23,32,002/-. There was payment of advance tax on 31-03-1992 in excess of the tax dues as recomputed by the final re-assessment under Section 147, ultimately finalised on 10-11-2003, as approved by the High Court, which also has acquired finality. The assessee, having paid advance tax in excess of 90% of the tax dues for the year, there was compliance of payment of advance tax and there could be no levy of interest under sub-section (1) of Section 234. There was, hence, no justification in levying the interest on the assessee under Section 234(3) of the Act, from the date of regular assessment to the date of determination on re-assessment. 6. We are unable to agree with the Tribunal that when there is no liability to interest under sub-section (1), there could be no liability further mulcted under sub-section (3). Section 234B(1) speaks of the liability of an assesee to pay interest @ 1% per month on the amount of the advance tax liability, failed to be paid; computed from the 1st of April of the next financial year to the date of determinati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d determining the total income, which acquired finality and then a re-assessment is made, computing total income at a higher amount; the assessee would not have paid advance tax at 90% of the tax dues, as determined for the excess amounts computed on re-assessment. Then definitely the assessee would be liable to pay interest as provided under Section 234B(3) from the 1st April of the next financial year to the date of determination of total income on re-assessment. In the present case, however, the unique facts have to be taken into account. Here, admittedly, ₹ 5,12,984/- was paid as advance tax and TDS on 31-03-1992, the last day of the previous year. Regular assessment was made determining the total income far in excess of that returned. The regular assessment was challenged in appeal, where considerable reduction of income was made. Later, re-assessments were carried out and there were adjustments made from refunds as also payment made against demand raised on reassessment. Refunds were ordered and disbursed. The refunds were made pursuant to proceedings dated 04-03-1996 and 10-03-1999 of the CIT (Appeals) totaling ₹ 10,49,131/-. Hence, the advance tax paid stood ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
