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2018 (3) TMI 962

at:- Admittedly, there was a demand raised as per the re-assessment. The flaw committed by the Tribunal was insofar as assuming that the tax paid under Section 140A remained with the Department. Even before the regular assessment, the same was returned with interest on 27.3.1998. Hence, the Department did not have any benefit of the amounts and whatever was paid under Section 140A stood refunded with interest to the assessee. The tax paid by the assessee under Section 140A also did not include any interest. Hence, there was no question of applying sub-Section (2) of Section 234B. On re-assessment after the re-computation of the total income, the tax demand was raised after giving credit of tax paid under Section 140A and also adding on the .....

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at the interest liability of the assessee under Section 234B(3) is for the period from 1.4.1997 to 12.6.1997. (ii) in interfering with the computation of interest under Section 234B of the Income Tax Act confirmed by the Commissioner of Income Tax (Appeals)? 2. For the assessment year 1996-97, what is impugned before us is levy of interest under Section 234B(3) of the Income Tax Act, 1961 ( Act , for short). Regular assessment of the assessee under Section 143(3) was completed on 26.3.1999. Interest under Section 243B & C was levied and later that under Section 234B was reduced considerably. A re-assessment was carried out, under Section 143(3) read with Section 147 dated 18.3.2002. The Assessing Officer did not levy any interest under .....

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essing Officer has provided us a working of the assessment and interest levied across the Bar with notice to the assessee's counsel. 5. We are of the opinion that the interpretation of the provisions by the Tribunal is flawless, but however the same cannot be applied in the case of the assessee. We say so because the amounts paid under Section 140A did not include any interest and the same was refunded on 27.3.1998 with interest. In the regular assessment under Section 143, the total tax computed along with surcharge came to ₹ 3,31,30,433/-. The regular assessment was made on 26.3.1999 and the payment under Section 140A of ₹ 6,20,06,000/- was on 29.6.1996. However, we see from the assessment order that even before the regula .....

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t. Hence, there was no question of applying sub-Section (2) of Section 234B. On re-assessment after the re-computation of the total income, the tax demand was raised after giving credit of tax paid under Section 140A and also adding on the refund with interest. There again was a demand raised after adjustments. Under Section 234B(3) on re-assessment if the interest leviable, for reason of short fall in payment of advance tax is increased, then from the first day of April next following such financial year, there shall be interest levied at the rate of 2% on the differential tax component, i.e. the increased demand of tax on such re-assessment, from that assessed as per the regular assessment. As we have noticed, there is definite increase o .....

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