Interest leviable on income added pursuant to reassessment order

127
Interest leviable on income added pursuant to reassessment order

Interest leviable on income added pursuant to reassessment order

Where reassessment order was passed against assessee making addition to assessee’s income in respect of unexplained investments, and as a consequence thereof, there resulted a liability for payment of advance tax as per relevant provisions, since such advance tax was not paid by assessee, interest as per section 234B(3) had to be mandatorily levied upon assessee

[2018] 100 taxmann.com 417 (Chandigarh – Trib.)

IN THE ITAT CHANDIGARH BENCH ‘B’

Satish Katoch

v.

Income-tax Officer, Palampur

SANJAY GARG, JUDICIAL MEMBER 

AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER

IT APPEAL NO. 298 (CHD) OF 2017

[ASSESSMENT YEAR 2000-01]

NOVEMBER  26, 2018 

Section 234B, read with sections 69 and 148, of the Income-tax Act, 1961 – Interest, chargeable as – Assessment year 2000-01 – Whether payment of interest under section 234B is mandatory once default occurs – Held, yes – Assessee had filed its return of income which was processed under section 143(1) – Later on, assessment was reopened under section 147/148 and reassessment order was passed making addition to income of assessee on account of unexplained investment – As a consequence thereof, there resulted a liability for payment of advance tax, which having not been paid, Assessing Officer levied interest under section 234B upon assessee – Whether since on account of reassessment order, assessee had undisputedly became liable to pay advance tax as per relevant provisions which was not paid by assessee, interest under section 234B had to be mandatorily levied upon assessee

 – Held, yes.

 [Para 14 and 15] 

[In favour of revenue]

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