AI Drafter 
TaxTMI 
TaxTMI 
2014 (7) TMI 403
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....f the Act for some period. Ultimately, reassess ment was concluded and the actual amount of tax liability as per reassess ment order for each of these months was determined, for the period 2005 06 as under: Tax period Amount of actual tax liability as per the reassessment order (Rs.) Balance amount of tax payable that was omitted to be declared (Rs.) Percentage of balance amount to the actual tax liability April, 2005 41,66,354 47,166 1.13% May, 2005 51,61,103 46,874 0.91% June, 2005 60,66,140 34,011 0.56% July, 2005 53,94,258 51,193 0.95% August, 2005 1,06,64,736 70,590 0.66% September, 2005 97,80,185 60,654 0.62% October, 2005 64,46, 217 62,613 0.97% November, 2005 50,09,044 76,611 1.53% December, 2005 74,35,621 77,940 1.05% January, 2006 50,16,549 82,634 1.65% February, 2006 50,91,041 52,986 1.04% and for the period 2006-07 as under: Tax period Amount of actual tax liability as per the reassessment order (Rs.) Balance amount of tax payable that was omitted to be declared (Rs.) Percentage of balance amount to the actual tax....
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....levy because of the difference being less than five per cent did not arise. The interest as indicated above was levied. Being aggrieved by this order levying interest under section 36 of the 5 Act, the assessee had appealed to the appellate authority-Joint Commis sioner of Commercial Taxes. In the appeal on behalf of the assessee, learned counsel for the assessee reiterated the stand that the provisions of section 36(1) of the Act is subordinate to section 72(2) of the Act and there fore if the difference of tax payable as per reassessment order under section 39(1) of the Act is less than five per cent of the actual liability, the provi sions of section 36(1) of the Act cannot be invoked, etc., and he pointed out that in all these cases, it was actually less than five per cent. It was also pointed out that the view taken by the assessing authority that it was inter est leviable under section 36(2)(c) of the Act was also not correct; that the liability has arisen only because disallowing certain warranty claims, etc., and therefore section 36(2)(c) of the Act was not applicable. The appellate authority which examined this contention rejected the same. But, no doubt, the differ....
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....ons of section 36 of the Act and therefore sustained levy of interest under section 36 of the Act as per the order dated March 8, 2010 (copy at annexure A). It is aggrieved by these orders sustaining levy of interest, the present revision petitions under section 65(1) of the Act. Appearing on behalf of the petitioner-assessee, the submission of Sri. 10 Thirumalesh, learned counsel, is that the levy of interest in the present case while no doubt is a levy attracting the provisions of section 36(2)(c) of the Act, but even here, the interest that is to be levied essentially is only under section 36(1) of the Act; that in all situations where revised return or return filed earlier is not corrected within three months, levy under section 36(1) of the Act is attracted and the assessee's case being one such levy of inter est under section 36(1) of the Act is attracted though it may be a situation as indicated in section 36(2)(c) of the Act. The submission is that the provisions of section 36(2) of the Act is situa11 tion where a dealer gets out of levy under section 36(1) of the Act and therefore submits that section 36(2) (c) of the Act being made subject to section 36(1) of th....
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....t which has been omitted from it, unless that omission is corrected within three months of the omission subject to sub-section (2) of section 72, and such interest is payable from the date the tax should have been declared, and the dealer shall declare his liability to pay that interest in such form and manner as may be prescribed. (2) If a dealer required to furnish a return under this Act,- (a) fails to pay any amount of tax or additional tax declared on the return, or (b) furnishes a revised return more than three months after tax became payable, declaring additional tax, but fails to pay any interest declared to be payable under sub-section (1), or (c) fails to declare any tax or interest which should have been declared, or (d) fails to make a return, such dealer shall be liable to pay interest in respect of the tax and additional tax payable as declared by him or the tax payable and interest payable under sub-section (1) for the period for which he has failed to furnish a return. (3) Where any other amount is payable under this Act is not paid within the period specified in section 42, interest shall be payable on such amount from such period. (4) The i....