TaxTMI 
TaxTMI 
2011 (7) TMI 135
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....ct. 1961 for short, hereinafter referred to as the 'Act'. The order under section 143(1)(a), dated 24-6-1991 came to be passed accepting the income of Rs. 30,590 filed by the assessee, Thereafter, proceedings were initiated under section 147 of the Act, on the ground of escapement of income. In pursuance of the notice issued, the assessee filed a revised return on 30-12-1993 showing the income of Rs. 1,50,590. An order came to be passed on such revised return under section 143(3) of the Act on 28-1-1994. In the said order, the Assessing Authority levied interest under section 234B on the difference of the amount by which tax on the total income determined on the basis of the reassessment or recomputation, vis-a-vis the return filed by the a....
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....case interest could be charged under section 234B in the order of reassessment when in the original order no interest was charged? (iv) Whether interest is to be levied invoking the provision of section 234B(3) and not section 234B(1) of Income-tax Act, on the facts and circumstances of the case? 5. At the time of argument, the learned Counsel appearing for the assessee, in view of the judgment of this Court in the case of Shri Ram Saboo v. Asstt. CIT [IT Appeal No. 166 of 2003], fairly conceded that section 234B of the Act has retrospective effect and the assessee is liable to pay interest under the said provisions. Therefore, the substantial question of law (i) and (iii) framed in this appeal is answered in favour of the rev....
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.... 153A, the assessment so made shall be regarded as a regular assessment for the purposes of this section. Explanation 3. ** **" 8. The assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than ninety per cent of the assessed tax the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period from the 1st day of April next following such financial year to the date of determination of total income under sub-section (1) of section 143 and where a regular assessment is made, to the date of such regular assessment on an amount equal to th....
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....e total income determined on the basis of the reassessment or recomputation exceeds the tax on the total income determined under sub-section (1) of section 143 or on the basis of the regular assessment aforesaid." 10. If an order passed under section 147, is not made for the first time, the assessment is treated as reassessment or recomputation made under section 147. Then, the assessee shall be liable to pay simple interest at the rate of 1% for every month from the period commencing on the following the date of determination of total income under sub-section (1) of section 143 and where a regular assessment is made as referred to in sub-section (1) following the date of such regular assessment till the date of reassessment or re-computat....
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....ation of tax under sub-section (1) of section 148 or order of regular assessment under section 143(8). Therefore when the assessment order is passed under section 147 and that is made the basis for levying interest, the Assessing Authority has to find out whether it is an order made for the first time under section 147 or is it a ease of re-assessment or recomputation under section 147. Depending on that finding, the interest is to be calculated either from the date of first day of April next following such financial year or from the date of determination of tax under sub-section (1) of section 143 or regular assessment under section 143(3). 12. In the instant case, there was a determination of tax under section 143(1)(a) and return filed ....