2007 (10) TMI 294

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....vit, the delay of 117 days in filing the appeal is condoned. 3. C.M. stands disposed of accordingly. I.T.A. No. 600 of 2006 4. In this appeal by the assessee under Section 260A of the Income Tax Act, 1961 (for short "the Act") against the order of the Income Tax Appellate Tribunal, Delhi Bench "G" Delhi (hereinafter referred to as "the Tribunal") passed in ITA No. 325 (Del)/2002 on 24.2.2006 for the assessment year 1991-92, it has been claimed that the following substantial questions of law arise for consideration of this Court:- "1. Whether the appellant having paid the tax payable as per return, to visit him with a liability of interest which he could not have imagined and as held in J. K. Synthetic's case, AIR 1994 SC 2393, w....

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....e Assessing Officer observing that where the advance tax paid is less than 90 per cent of the assessed tax, the interest under Section 234B of the Act is chargeable. The assessee filed an appeal before the CIT (A) who vide its order dated 9.11.1999 allowed the appeal and deleted the interest charged under Section 234B of the Act. Aggrieved with the same, the revenue filed an appeal before the Tribunal and the Tribunal vide its order dated 24.2.2006 allowed the appeal of the revenue holding the charging of interest under Section 234B of the Act to be proper. Hence, the present appeal by the assessee. 6. Learned counsel for the assessee has vehemently contended that the Tribunal was in error in reversing the order of CIT (A) thereby holdin....

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....nts relied upon by the assessee do not support its case any longer after the aforesaid amendment which has been made applicable with retrospective effect from 1.4.1989. 8. We have thoughtfully considered the respective submissions made by the learned counsel for the parties and do not find any force in the appeal. 9. It is no doubt true that prior to the amendment brought by Finance Act, 2001 which has been made effective retrospectively from 1.4.1989, the interest under Section 234B of the Act was chargeable with reference to the total income as had been declared by the assessee in its return and not on the assessed income. Explanation 1 to Section 234B of the Act was amended by Finance Act, 2001. It reads thus:- "Explanation I.- ....