TaxTMI 
TaxTMI 
2011 (8) TMI 1290
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....ssessee. However, written submission of the assessee is on record. So we proceeded to decide the appeal after hearing the ld. DR and perusal of the written submission. 3. Brief facts of the case are that the assessee filed its return of income declaring total income at ₹ 2,02,450/-. Scrutiny assessment u/s 143(3) was completed determining total income at ₹ 21,16,497/- making an addition on account of labour payments of ₹ 18,45,444 and addition on account of work in progress of ₹ 56,451/-. The assessee went in appeal before ld. CIT(A) against this addition. 4. The ld. CIT(A) granted relief of ₹ 15,06,677/- to the assessee and sustained an addition of ₹ 4,07,367/- on account of disallowance of labour expe....
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....ssessee preferred an appeal before the ld. CIT(A) who vide his order dated 25.5.2009 deleted the addition on account of work in progress and sustained the levy of interest u/s 234B but as regards the period of charging interest thereof the ld. CIT(A) held that the same can be charged only upto the date of the original assessment order passed u/s 143(3) and not upto the date 28.11.2008 i.e. the date of the order passed in pursuance of the order of the Tribunal by observing as under :- "On going through the facts of the case, the provisions of law and the decision in the case of Freightship Consultants (P) Ltd. vs. ITO, it is observed that in the present case, interest u/s234B has been wrongly charged for the period 1.4.1997 to 28.11.2008 i....
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.... Freightship Consultants (P) Ltd. vs. ITO (2008) 110 ITD 377 (Del). following which the ld. CIT(A) has given relief to the assessee. 9. After hearing both the parties and perusing the record, we find that the section 234B reads as under :- "234B(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 per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of 2 per cent for every month or part of a month comprised in the period from the 1st day of April next following such financial ....
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...., the excess interest paid, if any, shall be refunded." It is clear from the above that sub-section (4) of section 234B only says that interest payable u/s 234B(1) shall be increased or reduced but it has not specified the period for which it will be levied, since the period already stands specified in section 234B (1) reproduced earlier. It is further noted that assessee's case falls u/s 234B(1) and not u/s 234(B)(3) as there is regular assessment u/s 143(3) and no re-assessment and recomputation u/s 147 or 153(A) or the Act. Hence the period of charging interest u/s 234B would be as specified under section 234B(1) i.e. 1st day of April next following financial year to the date of the regular assessment order passed u/s 143(3). On the id....