Hari Om Maratha, J.M. - (1.) THIS appeal by the assessee relates to asst. yr. 1990-91 and emanates from the order under Section 154 of the IT Act.
(2.) The assessee-firm filed return of income for the year under consideration on 29th Oct., 1990, declaring a total income of Rs. 12,54,130. The same was processed under Section 143(1)(a) and also notices under ss. 143(2) and 142(1) were issued. Intimation under Section 143(1)(a) was passed on 15th Oct., 1992, accepting the returned income but interest was charged under Section 234B at Rs. 37,758. Regular assessment under Section 234B at Rs. 37,758. Regular assessment under Section 143(3) was completed on 31st Oct., 1992, accepting the income returned'and charging interest under Section 234B of Rs. 37,758. The assessee filed petition under Section 154 for rectification of the order stating that interest under Section 234B has been wrongly charged from 1st April, 1992 to 30th Oct., 1992, i.e., till the date of determination of income under Section 143(1)(a) which was declined by the AO, when the assessee went in appeal before the CIT(A) he did not accept the plea of the assessee and dismissed the appeal. We have heard the submissions as advanced by Shri Lakshminarasirnhan, learned authorised representative, and Shri Anjaneyulu, learned Departmental Representative, perused the evidence on record and carefully considered the issue under consideration. It is undisputed fact that the assessee filed return of income on 20th Oct., 1990. Intimation under Section 143(1)(a) was passed on 15th Oct., 1992, accepting the return of income as filed by the assessee. Interest under Section 234B to the tune of Rs. 37,758 was also charged. Regular assessment under Section 143(3) was completed on 31st Oct., 1992, in which interest of Rs. 37,750 was also charged under Section 234B from 1st April, 1990, to the date of intimation under Section 143(1)(a), dt. 15th Oct., 1992. The assessee has paid Rs. 74,310 under Section 140A on 26th Oct., 1990. Section 234B(2)(i) of the Act reads as under: "234B(2) Where, before the date of determination of total income under Sub-section (1) of Section 143 or completion of a regular assessment, tax is paid by.the assessee under Section 140A or otherwise, (i) interest shall be calculated in accordance with the foregoing provisions of this section upto the date on which the tax-is so paid, and reduced by the interest, if any, paid under Section 140A towards the interest chargeable under this section; (ii)....................." Thus, it is dear that interest should be calculated upto the date on which tax is paid and reduced by interest, if any, paid under Section 140A towards interest chargeable under Section 234B. The delay in computing the assessment seems to be on the part of the Department in this case and taking into account the fact that no addition was made to the income declared by the assessee and the returned income was accepted by the Department, we are of the opinion that the provisions of Section 234B(2)(i) have not been properly implemented. We have seen the computation of income filed by the learned authorised representative which also go to justify the case of the assessee. The learned CIT(A) has come to the conclusion on technical ground without stating a word regarding merits of the appeal before him.
(3.) THE computation of income filed before us makes it amply clear that the mistake in the intimation was apparent from record and should have been rectified by the Department. To do justice and to settle the issue under consideration, we are of the opinion that the appeal of the assessee should be accepted. THE appeal in question is against the order passed under Section 154 and is not against the levy of interest under Section 234B alone. Interest is charged in this case upto the date of payment made under Section 140A. Consequently, the appeal is accepted and is allowed.;