TaxTMI 
TaxTMI 
2016 (5) TMI 973
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....sions of section 234B(1) of the Act. 3. The lower authorities have erred in holding that the assessment completed was the first assessment under section 147 and therefore it is a regular assessment and consequently the provisions of section 234B(1) would apply by completely ignoring the fact that there was an intimation under section 143(1) in the appellant's case determining the tax liability for the assessment year 2011-12. 4. The appellant submits that this was not a case of assessment made for the first time but it was a case of order of reassessment or re-computation under section 147 and therefore the interest has to be calculated from the date of determination of tax under section 143(1)(a) and to the date of re-assessment on the difference between the tax determined under section 143(1) and in the re-assessment as per the provisions of section 234B(3) of the Act and not from 1st April of the assessment year as held by the lower authorities. 5. The appellants rely on the decision of the Karnataka High Court in the case of Vijay Kumar Saboo (HUF) and another Vs. ACIT (340 ITR 382) and the order of the Income-tax Appellate Tribunal, Mumbai in the case of Sri Gopal Aga....
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....to 27/6/2014 and not from the date of 01/04/2011, as done by the assessing officer. Further, the interest has to be calculated on the amount by which the tax on the total income determined on the basis of the reassessment u/s 147 exceeds the tax on the total income determined under subsection (1) of section 143 of the Act. Hence, the interest has to be calculated on the tax difference between the income of Rs. 1,92,09,210/-and admitted in the return of income originally and not on the income finally determined under section 147 of the Act. The Ld.CIT(A) observed that it is ascertained from the facts of the case that the AO has rightly worked out the interest u/s 234B as per the provisions of subsection (1) of section 234B. The relevant section is reproduced as under: "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 an assessee under the provisions of section 210 is less than 90% of the assessed tax, the assessee shall be liable to pay simple interest at the rate of 1% for every month or part of a month comprised in th&eac....
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....not from the date of determination of tax u/s 143(1), to the date of regular assessment u/s 147. Aggrieved by the order of the CIT(A), the assessee is in appeal before us. 4. We have heard both the parties and perused the material on record. In this case, the main pleas of the ld. AR is that the provisions of sub-section (3) of section 234B should be invoked as the assessment in this case was made only under section 147 and as such, the interest be charged from the date of Intimation under section 143(1)(a). It is true that sub-section (3) of section 234B provides for the charging of interest, as a result of reassessment under section 147, in a situation in which either the assessment was originally made under section 143(3) or there was determination of income under section 143(1). In both the situations, the interest under section 234B(3) is charged with the starting point as the date of determination of income or the date of regular assessment. If the contention of the ld. AR is accepted that in a case where there is an assessment under section 147, then invariably the interest should be charged under section 234B(3) from the date of determination of income under section 143(....
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.... is devoid of any merit. It is well-settled that the marginal note to a section, albeit plays an important role in the interpretation of a provision, but cannot control the clear language of a provision. The Hon'ble Supreme Court in Prakash Nath Khanna v. CIT [2004] 266 ITR 1has laid down that though the heading of section or marginal note may be relied upon to clear any doubt or ambiguity in the interpretation of the provision and to discern the legislative intent, it cannot control the meaning of the body of the section if the language employed there is clear. Similar view has been taken by the Hon'ble jurisdictional High Court in Dharamvat Provisions Store v. CIT [1983] 139 ITR 700(Bom.). We, therefore, jettison this contention advanced on behalf of the assessee for the reason that the language of sub-section (1) of section 143 is clear and unambiguous as it refers to the processing of return and the resultant issuance of 'Intimation' to the assessee. In such a situation, there is no rationale to go by the heading of section 143 which refers to 'Assessment', also covering the regular assessment under sub-section (3). 5. Adverting the present case, it i....