2015 (12) TMI 628

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....ibunal till the date of order of original assessment?" 2. As can be seen from the question, the issue pertains to the date upto which, interest under Section 234B of the Income Tax Act, 1961 can be admitted. As is well known, Section 234B pertains to interest for default in payment of advance tax. Sub section (1) need to be noted, relevant portion of which reads as under: "234B. Interest for defaults in payment of advance tax. (1) Subject to the other provisions of this section, where, in any financial year, an 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 percent of the assess....

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....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. Explanation 3.In Explanation 1 and in sub-section (3), "tax on the total income determined under sub-section (1) of section 143" shall not include the additional income-tax, if any, payable under section 143.]" 3. Under sub-section (1) of Section 234B of the Act whenever advance tax paid by the assessee is found to be less than 90 per cent of the assessed tax, the assessee is liable to pay interest at the prescribed rate for every month or part thereof from 1st day of April next, following such financial year upto the date of determination of total income under sub-section (1)....

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....ssessment, the date of such assessment. In view of such clear language of sub-section (1) of Section 234B of the Act, there is no scope for extending such liability to a later date and relate it to a revisional appellate or a rectification order as is desired by the revenue. 5. We notice that the Tribunal, in the present case, has followed the decision in case of Frightship Consultants P. Ltd. vs. Income Tax Officer reported in [2008] 300 ITR (AT) 96 (Delhi). The Tribunal referred to the decision of Supreme Court in case of Modi Industries Ltd. vs. CIT [1995] 216 ITR 759 (SC)  to hold that the term 'regular assessment' would mean the original order of assessment and would not include any other debt of the consequential order....