2013 (11) TMI 1047

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....ed the following substantial questions of law:- (i) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in directing the A.O to exclude Sales Tax out of Total Turnover for computation of Deduction u/s 80HHC, if the amount had been paid in time in terms of provisions of Section 43-B? (ii) Whether, on the facts and in the circumstances of the case in confirming the orders of the CIT(A) that interest u/s 234B was not chargeable on Re-Assessment where originally no interest had been charged? First question of law is concluded by judgment of this Court in I.T.A. No.241 of 2004 - Commissioner of Income Tax-I, Ludhiana v. M/s Vardhman Polytex Ltd., Ludhiana decided on 21.8.2006, wherein it has been he....

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....ate of such regular assessment, on an amount]] equal of the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax. xx xx xx xx xx xx Explanation 2. - Where, in relation to an assessment year, an assessment is made for the first time under Section 147 [or section 153A], the assessment so made shall be regarded as a regular assessment for the purposes of this section." The return of the assessee was initially processed under Section 143(1) of the Act and that the re-assessment proceedings were initiated against the assessee under Section 147 of the Act. The Assessing Officer ordered the charging of interest under Section 234-B of the Act on the tax found payable ....

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....rging of interest under Section 234-B of the Act. There was no previous assessment finalized therefore, in the assessment framed in re-assessment proceedings under Section 147 of the Act would attract levy of interest under Section 234B of the Act. Reliance may be made to a judgment of this Court in (2011) 339 ITR 557 - Commissioner of Income Tax v. Nahar Spinning Mills Ltd., wherein it has been held as under:- "Keeping in view the provisions of s.234B, we do not find any illegality or infirmity in the well reasoned and well discussed order of CIT(A) because assessment framed under s.147 being not made for the first time is not a regular assessment and hence the order of CIT (A) in holding that the interest under s.234B of IT Act can onl....