TaxTMI 
TaxTMI 
2015 (11) TMI 433
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....Patna Bench, Patna in ITA No. 327/Pat/2003 for the assessment year 1996-97 by which the order of the Commissioner of Income-tax (A)-II has been set aside holding that interest under Section 234B and 234C cannot be charged in absence of any order of the assessing officer. The facts of this case lie in a narrow compass. The assessment was made under Section 143(3)/263 on total income of Rs. 65,35,430/- but the assessment order itself did not speak about the charging of any interest under Sections 234B and 234C. Vide ITNS 150 computation form, the amount of interest under Sections 234B and 234C were also shown. The appellants challenged the assessment order including charging of interest under Sections 234B and 234C under the ITNS 150 form. ....
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....s such charging of interest is legal and valid? (2) Whether on the facts and in the circumstances of the case in view of amendment in proviso to Section 234A & 234B by Finance Act 2001 with retrospective effect from 1.4.1989 the case decided by the Hon'ble Supreme Court in 247 ITR page 209 and relief by the Tribunal could be said to be still applicable as the amendment makes the charging of interest mandatory and not directory?" So far as the first question is concerned, learned counsel for the Revenue relies upon a decision of the Apex Court in the case of Kalyan Kumar Ray vs. Commissioner of Income-Tax : 191 ITR 634 (SC), at page 638 of which, it has been held as follows : "The statute does not, however, require that both the co....
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....orm for Assessment of Tax/Refund" (I.T.N.S. 150). The practice is that, after the "assessment order" is made by the Income-tax Officer, the tax is calculated and the necessary columns of I.T.N.S. 150 are filled up showing the net amount payable in respect of the assessment year. This form is generally prepared by the staff but it is checked and signed or initialed by the Income-tax Officer and the notice of demand follows thereafter. The statute does not, in terms, require the service of the assessment order or the other form on the assessee and contemplates only the service of a notice of demand. It seems that while the "assessment order" used to be generally sent to the assessee, the other form was retained on file and a copy occasionally....
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....the assessee. The relevant part of the said decision is as follows:- "It will be seen that under the provisions of Section 234B, the moment an assessee who is liable to pay advance tax has failed to pay such tax or where the advance tax paid by such an assessee is less than 90 per cent of the assessed tax, the assessee becomes liable to pay simple interest at the rate of one per cent for every month or part of the month. Shri Guru Krishna Kumar is right in stating that levy of such interest is automatic when the conditions of Section 234B are met. We are of the view that the facts of the present case are squarely covered by the decision contained in Kalyankumar Ray's case inasmuch as it is undisputed that contained a calculation ....
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.... 1.4.89 underwent further amendments after the decision of the Supreme Court in Ranchi Club Limited case (supra) by further adding an Explanation in the said provisions with retrospective effect from 1.4.1989 by the Finance Act, 2001 which reads as under:- "Explanation 1.- In this Section, "assessed tax" means the tax on the total income determined under sub-section (1) of Section 143 or on regular assessment as reduced by the amount of tax in accordance with the provisions of Chapter XVIII on any income which is subject to such deduction or collection and which is taken into account in computing such total income." The said provision has further been amended by the Finance Act, 2006 with effect from 1.4.2007 which however, is not relev....