RAJESH BALIA, J. - (1.) HEARD learned counsel for the parties.
(2.) THIS appeal is directed against the order of Tribunal, Jodhpur Bench, Jodhpur dt. 27th March, 2002. [reported as Smt. Premlata Jalani vs. Asstt. CIT (2002) 75 TTJ (Jd) 172--Ed.] The appeal relates to intimation/assessment under s. 143(1) of the IT Act, 1961 (hereinafter called as the Act) for the asst. yr. 2000-01 in the case of respondent-assessee. The return of income was filed by the assessee on 30th Oct., 2000, for the asst. yr. 2000-2001. An intimation under s. 143(1) was sent by the AO on 9th Nov., 2000, making variation in the calculation computing the interest as made by the assessee under ss. 234B and 234C of the Act. Aggrieved with the aforesaid additions made on admitted liability to pay interest by the assessee while exercising jurisdiction under s. 143(1), the assessee preferred a rectification application before the AO which was dismissed by him on 16th Jan., 2001. He held that there is no mistake apparent on the face of record and the AO had jurisdiction to make such adjustment in the computation of interest in exercise of his jurisdiction under s. 143(1)(a) of the Act. The appeal filed by the assessee before the CIT(A) was dismissed on 2nd Nov., 2001.
(3.) WE may notice here that no controversy arises before us in respect of variation made in computation of interest under s. 234B. Only issue survives with respect to addition on account of interest computation under s. 234C of the Act. The assessee's contention in that regard has been, firstly that the AO was not justified in making such recomputation of interest chargeable under s. 234C on the basis of different interpretation of law. Making such addition is outside the purview and scope of the power vested under s. 143(1) of the Act. On merit, it was contended that the provisions of s. 234C were inserted by the Act of 1987, w.e.f. 1st April, 1989. The proviso to s. 234C excludes the inclusion of capital gains in computation of total income for the purpose of computing the advance tax to be paid at any time before the capital gains arises. There is no liability to pay any amount of advance tax, prior to the date capital gains accrues or arises. Therefore, no interest is chargeable in respect of shortfall in payment of advance tax relatable to capital gains, prior to the date capital gains accrued or arose and advance tax in respect thereof became payable. Then only the liability to pay interest on the shortfall in payment of advance tax in relation thereto arises, if such advance tax is not paid on the instalment falling due thereafter or until 31st March, of the previous year ending in respect of which income is to be assessed. ;