TaxTMI 
TaxTMI 
2017 (3) TMI 571
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....e on the total income declared in the return furnished by the Appellant u/s.139(1) of the Act", and not on the basis of a second return filed in response to the notice issued u/s.148 of the Act, unless such return was the only return furnished by the Appellant, for the assessment year, in the facts and the circumstances of the case and in law. 3) The learned CIT (A), is wrong in holding, that the appellant is liable to pay advance tax, on the basis of the total income declared in the second return furnished u/s.148, by interpreting the meaning of the words "tax due on the returned income", applicable in respect of not only the return furnished u/s.139 (1) of the Act, but also in respect of the second and subsequent returns, furnished u/s.148, for the same assessment year, in the facts and the circumstances of the case and in law. 4) For these and other additional grounds of appeal that may be adduced at the time of hearing, the order of the Commissioner of Income Tax (Appeals)-2, Coimbatore, is opposed to law and unsustainable in the facts and the circumstances of the case. 2.0 All the grounds of the appeal are related to charging of interest u/s.234C of the Income Tax Act (i....
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....is liable to pay advance tax going by her tax liability on the total income of the year as declared in the return furnished u/s.148 and because no advance tax was paid, whole of the advance tax due on specified dates becomes the short fall till that quarter. It is important to note that interest u/s.234B or 234C is compensatory interest levied for not correctly estimating the income of the year chargeable to tax and for not paying appropriate advance tax installments during the previous year. It is clear from the opening words of section 234C that interest under this section attracts in cases of total failure of advance tax also. The dispute, therefore, boils down to a limited point of whether return of income furnished by the assessee pursuant to notice u/s 148 can be the basis for computing the tax due on the returned income and consequent interest u/s.234C. A plain reading of section 234C reveals no such bar or distinction. Any return furnished by the assessee, whether u/s.139 or u/s.148, forms the basis for computing tax due on the income returned therein. Under normal circumstances, as per provisions of section 139(1), any assessee whose total income in a year exceeds taxable ....
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....iled in response to the notice issued u/s.148 of Act. On the other hand, the Learned Departmental Representative (hereinafter referred to as 'Ld.DR') relied on the lower authorities orders and contended that the interest u/s.234C is chargeable on the total income admitted by the assessee in the return filed in response to the notice issued u/s.148 of Act. 5.0 We heard the rival submissions and perused the material placed on record. We have carefully gone through the provisions of Sec. 234C of Act, which reads as under: [Interest for deferment of advance tax. 78 234C. (1) 79[Where in any financial year,- 80[(a) an assessee, other than an eligible assessee in respect of the eligible business referred to in section 44AD, who is liable to pay advance tax under section 208 has failed to pay such tax or- (i) the advance tax paid by such assessee on its current income on or before the 15th day of June is less than fifteen per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of September is less than forty-five per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of....
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....ancial year:] 84[Provided further that nothing contained in this sub-section shall apply to any shortfall in the payment of the tax due on the returned income where such shortfall is on account of increase in the rate of surcharge under section 2 of the Finance Act, 2000 (10 of 2000), as amended by the Taxation Laws (Amendment) Act, 2000 (1 of 2001), and the assessee has paid the amount of shortfall, on or before the 15th day of March, 2001 in respect of the installment of advance tax due on the 15th day of June, 2000, the 15th day of September, 2000 and the 15th day of December, 2000 :] 85[Provided also that nothing contained in this sub-section shall apply to any shortfall in the payment of the tax due on the returned income where such shortfall is on account of increase in the rate of surcharge under section 2 of the Finance Act, 2000 (10 of 2000) as amended by the Taxation Laws (Amendment) Act, 2001 (4 of 2001) and the assessee has paid the amount of shortfall on or before the 15th day of March, 2001 in respect of the installment of advance tax due on the 15th day of June, 2000, the 15th day of September, 2000 and 15th day of December, 2000.] 86[Explanation.-In this section,....