2013 (7) TMI 66

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....Income Tax Appellate Tribunal was right in law in holding that interest under Section 234B is chargeable under Section 234B(1) and Section 234B(3) has no application? (ii) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in not following the decision of the Income Tax Appellate Tribunal, Mumbai Bench, in the case of Datamatics Ltd. Vs. ACIT reported in 2008 (299) ITR (AT) 286 and deciding the issue contrary to that decision, without referring to Special Bench? 2. It is seen from the facts narrated herein that the assessee returned an original assessment under Section 143(1) of the Income Tax Act on 31.03.2006. Subsequently, the assessment was completed under Section 147 read....

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....sideration of the rival contentions and the provisions of the Income Tax Act, the Tribunal held that going by Explanation (2) to Section 234B of the Income Tax Act, when the assessment in the assessee's case was admittedly made for the first time under Section 147 read with Section 143(3) of the Income Tax Act, the said assessment is a regular assessment attracting sub section (1). It further pointed out that the Mumbai Bench decision related to a case of reassessment; hence, the case of the assessee being different from the decided case, interest was chargeable under Section Section 234B(1) of the Income Tax Act. Aggrieved by this, the assessee is on appeal before this Court. 4. We do not agree with the submission of the assessee herein....