2010 (6) TMI 85

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....ing counsel for I.T. Dept. JUDGMENT (Judgment of the Court was delivered by F.M. Ibrahim Kalifulla, J.) The revenue has come forward with these appeals raising the following substantial questions of law: "1. Whether on the facts and circumstances of the case, the Tribunal is right in holding that the additional tax liability due to the amendment cannot give rise to a levy of interest u....

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.... the two conditions enumerated in the Proviso to Section 80 HHC (3) and consequently, the liability for payment of additional tax was created. In such circumstances, the question for consideration was whether such liability to payment of additional tax would also create a further liability of payment of interest under Section 234 (B) of the Act on the ground that such additional tax payable with e....

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..... In the present case, the liability has arisen only due to the subsequent amendment in the year 2005 with retrospective effect. The additional tax liability due to the subsequent amendment cannot give rise to a levy of interest under Section 234 B because at the time of payment of the advance tax under no means, the assessee could foresee the said additional tax liability. Accordingly, by followi....