Assessment under 143(3) was completed in 2008 with minor additions over returned income.
Same case was again reopened U/s 153A in 2014 and completed with accepting the same income as assessed in 143(3) of 2008. (No additions)
My question is -
whether 234B interest is to be calculated tilll 2014 (153A) order date (or)
is it to be calculated till 2008 order date i.e 143(3) order?
234B interest is to be calculated tilll 2014 (153A) order date.
Sec 234B(4) as follows :
[(3) where, as a result of an order of reassessment or recomputation under section 147 or section 153A, the amount on which interest was payable in respect of shortfall in payment of advance tax for any financial year under sub-section (1) is increased, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period commencing on the 1st day of April next following such financial year and ending on the date of the reassessment or recomputation under section 147 or section 153A, on the amount by which the tax on the total income determined on the basis of the reassessment or recomputation exceeds the tax on the total income determined under sub-section (1) of section 143 or on the basis of the regular assessment as referred to in sub-section (1), as the case may be;].
As in above, 234B interest is levied in 147/153A only if there is a increase in assessed income.
Please clarify.
CAclubindia
