TMI Blog2007 (10) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... n the original provision. It is not arbitrary or unreasonable – interest is liable on assessed income less advance tax paid less tds. - 23598-CII of 2006 and 600 of 2006 - - - Dated:- 30-10-2007 - M.M. KUMAR. and AJAY KUMAR MITTAL JJ. B.L. Gulati for the appellant. Yogesh Putney for the respondent. AJAY KUMAR MITTAL J. - C.M. No. 23598-CII of 2006 1. This is an application under Section 5 of the Limitation Act for condonation 117 days' delay in filing the appeal. The application is supported by the affidavit. 2. Having heard learned counsel for the parties and perusing the application which is supported by an affidavit, the delay of 117 days in filing the appeal is condoned. 3. C.M. stands disposed of accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case are that the assessee filed a return of income for assessment year 1991-92 declaring a loss of Rs.31,130/- and advance tax of Rs.1,37,808/- was paid. The case of the assessee was processed under Section 143 (1) of the Act and refund was made. Later on, the Assessing Officer vide its order dated 30.8.1993 assessed the income of the assessee at Rs.12,17,990/- which was rectified to Rs.11,86,330/- under Section 154 of the Act. Accordingly, a notice of demand was issued in which interest had also been charged under Section 234B of the Act. The assessee moved an application under Section 154 of the Act on 9.2.1994 and the same was dismissed by the Assessing Officer observing that where the advance tax paid is less than 90 per cent of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ogesh Putney, the learned counsel for the revenue drew our attention to Explanation to Section 234B of the Act. According to the learned counsel, the aforesaid Explanation 1 to Section 234B of the Act has been amended by Finance Act, 2001 with retrospective effect from 1.4.1989 and the vires of the same stands upheld by this Court in Raj Kumar Singal v. Union of India and others , [2002] 255 ITR 561. As per amended provisions which are applicable to the present assessment year 1991-92 as well, interest under Section 234B of the Act is to be charged with reference to assessed tax. He supported the order passed by the Tribunal and further submitted that the judgments relied upon by the assessee do not support its case any longer after the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est is leviable on the income as determined by the assessing authority minus the income on which the tax has been paid or deducted. The amendment is only calculated to clarify the ambiguity that was felt in the original provision. It is not arbitrary or unreasonable." 11. Now referring to the case law cited by the learned counsel for the assessee, it would be sufficient to notice that the Apex Court in J.K. Synthetics Limited's case [1994] 94 STC 422; AIR 1994 SC 2393, was interpreting the provisions of Sales Tax law and, therefore, the same does not advance the case of the assessee. Equally, the judgments of the Apex Court in Ranchi Club Ltd's case [2001] 247 ITR 209 and that of the Patna High Court in Ranchi Club Ltd.'s ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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