Case Law Details
S. Vijayalakshmi Vs ITO (ITAT Chennai)
In the present case, regular assessment order u/s.143(3) r.w.s.147 of the Act completed on 31.12.2009 was subject to revisional order of ld. CIT. Consequent to order of the ld. CIT passed u/s.263 of the Act dated 28.03.2012, the AO finally concluded the impugned assessment on 20.03.2013 and he charged the interest u/s.234B of the Act from First day of the assessment year till the date of completion of assessment i.e. on 20.03.2013. The effect of revisional order by ld. CIT in this case resulted in enhancement of the assessed income. The amount by which the advance tax paid by the assessee falls short of the assessed tax, which has been increased as a result of the order passed by the ld. CIT. This is the amount on which the interest was payable under sub-section (1) for, if the assessee were to make a correct disclosure of her income in the first instance, the assessee would have been liable to pay interest under sub-section(1) on the short fall. The words, “the interest shall be increased”, would contemplate both a situation where interest both a situation where interest had been levied on the assessee in the first instance and a situation where no interest has been levied on the assessee in the original order of assessment. There is no reason or justification for the Bench on the basis of the plain language used in sub-section(4) to exclude the latter category of cases as contended by the ld.A.R frofm the liability to pay interest. In accepting the submission of the assessee, it would be lead to adopting an interpretation, which would be contrary both to the language used by the Legislature and the intent that is embodied in sub-section(4) of s.234B.
In our opinion, the assessee’s case falls under purview of Sec.234B(1) r.w.s.234B(4) only and not u/s.234B(3) and it would be even encountered that no interest is chargeable for that portion of the income forming part of the total income as determined by the ld.CIT in his order u/s.263, which was not earlier part of the income determined by the ld. Assessing Officer. In other words, the interest charged in terms of Sec.234B become payable on the income already disclosed in the return filed, together with the income determined bythe AO in consequent to the order passed u/s.263 of the Act. The concerned interest shall be on the consolidated amount of income i.e. both determined in re-assessment order and income determined in consequent to revisional order passed u/s.263, when the re assessment order was subject to revision u/s.263 of the Act. Accordingly, we hold that the interest u/s.234B of the Act to be charged in these cases from the first day of each assessment year to relevant to assessment year till the date of the completion of assessment made i.e. 20.03.2013 and not to the date, the re assessment order was passed i.e. 31.12.2009.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
These four appeals of the assessee are directed against the common order of the Commissioner of Income-tax (Appeals), Puducherry dated 22.05.2017 pertains to assessment years 2003 04, 2004-05, 2005-06, 2006-07. Since Grounds raised in these four appeals are common in nature, these appeals are clubbed together, heard together, disposed off by this common order for the sake of convenience.
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