V.Umayal, Coimbatore V. ITO, Coimbatore

ITA 714/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7910 (ITAT-CHENNAI)
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2017
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 04-01-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 23-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B. SAHADEVAN
• Assessee Lawyers: K. RAGHU
• Keywords: Revised return; TDS; Capital Gains
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 44AD; 11; 15; 271(1)(b); 139; 92; 208

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI . . . , !'. . # $ % , ' () BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER ./ ITA NO.714/MDS/2016 * +* /ASSESSMENT YEAR: 2009-10 SHRI V. UMAYAL, 550/15, 4 TH FLOOR, WHITES D.B.ROAD, R.S.PURAM, COIMBATORE-641 002. [PAN: AANPU 7853 N] VS. THE INCOME TAX OFFICER, WARD-II(3), COIMBATORE. ( ,- /APPELLANT) ( ./,- /RESPONDENT) ,- 0 1 / APPELLANT BY : MR.K.RAGHU, FCA ./,- 0 1 /RESPONDENT BY : MR.B.SAHADEVAN, JCIT # 0 2' /DATE OF HEARING : 04.01.2017 34+ 0 2' /DATE OF PRONOUNCEMENT : 31.01.2017 / O R D E R PER D.S.SUNDER SINGH , ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER DATED 30.12.2015 OF COMMISSIONER OF INCOME TAX (APPEALS)- 2, COIMBATORE, IN ITA NO.216/14-15 FOR THE AY 2009-10 AND RAISED ON T HE FOLLOWING GROUNDS:- ITA NO.714/MDS/2016 :- 2 -: 1) THE LEARNED CIT(A) OUGHT TO HAVE HELD THAT INTEREST U/S.234C WAS NOT CHARGEABLE AT ALL, BY THE AO ON THE BASIS OF TAX DUE ON THE RETURNED I NCOME, U/S.147 OF THE I.T.ACT, 1961, AS THERE WAS NO DEFERMENT OF ADVANCE TAX, REA D WITH EXPLANATION TO SECTION 234C, THE APPELLANT HAVING FURNISHED A RETURN U/S.1 39, ENTITLING HER TO A REFUND OF TAX, IN THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW. 2) THE LEARNED CIT(A), OUGHT TO HAVE HELD THAT TAX DU E ON THE RETURNED INCOME UNDER EXPLANATION TO SECTION 234C OF THE I.T.ACT, 1961, M EANS THE TAX CHARGEABLE ON THE TOTAL INCOME DECLARED IN THE RETURN FURNISHED BY TH E APPELLANT U/S.139(1) OF THE ACT, AND NOT ON THE BASIS OF A SECOND RETURN FILED IN RE SPONSE TO THE NOTICE ISSUED U/S.148 OF THE ACT, UNLESS SUCH RETURN WAS THE ONLY RETURN FUR NISHED BY THE APPELLANT, FOR THE ASSESSMENT YEAR, IN THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW. 3) THE LEARNED CIT (A), IS WRONG IN HOLDING, THAT THE APPELLANT IS LIABLE TO PAY ADVANCE TAX, ON THE BASIS OF THE TOTAL INCOME DECLARED IN THE SE COND RETURN FURNISHED U/S.148, BY INTERPRETING THE MEANING OF THE WORDS TAX DUE ON T HE RETURNED INCOME, APPLICABLE IN RESPECT OF NOT ONLY THE RETURN FURNISHED U/S.139 (1 ) OF THE ACT, BUT ALSO IN RESPECT OF THE SECOND AND SUBSEQUENT RETURNS, FURNISHED U/S.14 8, FOR THE SAME ASSESSMENT YEAR, IN THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW. 4) FOR THESE AND OTHER ADDITIONAL GROUNDS OF APPEAL TH AT MAY BE ADDUCED AT THE TIME OF HEARING, THE ORDER OF THE COMMISSIONER OF INCOME TA X (APPEALS)-2, COIMBATORE, IS OPPOSED TO LAW AND UNSUSTAINABLE IN THE FACTS AND T HE CIRCUMSTANCES OF THE CASE. 2.0 ALL THE GROUNDS OF THE APPEAL ARE RELATED TO CHARG ING OF INTEREST U/S.234C OF THE INCOME TAX ACT (IN SHORT THE ACT) . THE ASSESSEE FILED RETURN OF INCOME DECLARING TOTAL INCOME OF RS.6,27, 130/- ON 29.07.2009 FOR THE AY 2009-10. SUBSEQUENTLY, A SURVEY U/S.133 A WAS CONDUCTED IN THE CASE OF SHRI RM VELLAYAN (ASSESSEES HUSBAND) O N 04.09.2013 AND DURING THE COURSE OF SURVEY, THE ASSESSEE ADMITTED ADDITIONAL INCOME OF RS.13,00,000/- AND FILED REVISED RETURNS CONSEQUENT TO THE ISSUE OF NOTICE U/S.148 OF THE ACT ON 25.11.2013. THE ASSESSING OF FICER (HEREINAFTER REFERRED TO AS AO) WHILE COMPUTING THE INTEREST U /S.234C CHARGED THE INTEREST ON THE REVISED INCOME FILED IN RESPONSE TO THE NOTICE ISSUED U/S.148. THE ASSESSEE FILED PETITION U/S.154 BEFOR E THE AO OBJECTING FOR CHARGING INTEREST U/S.234C ON THE REVISED RETURN OF INCOME. ACCORDING TO THE ASSESSEE, THE LEVY OF INTEREST U/S.234C IS APPL ICABLE ONLY IN THE CASE OF FIRST RETURN OF INCOME FILED U/S.139(1) OR IF NO RE TURN IS FILED. IN CASE, THE ITA NO.714/MDS/2016 :- 3 -: ASSESSEE REVISED THE RETURN OF INCOME U/S.148, THE PROVISIONS OF SECTION 234C ARE NOT APPLICABLE ON THE DIFFERENCE INCOME AD MITTED IN RESPONSE TO THE NOTICE ISSUED U/S.148. THE AO REJECTED THE PET ITION MADE BY THE ASSESSEE FOR RECTIFICATION U/S.154 STATING THAT THE INTEREST U/S.234C WAS CHARGED CORRECTLY ON THE INCOME DECLARED IN THE RET URN OF INCOME FURNISHED BY THE ASSESSEE ON 19.12.2013. 3.0 AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE WEN T ON APPEAL BEFORE THE LEARNED COMMISSIONER OF INCOME TAX (APPE ALS) (HEREINAFTER REFERRED TO AS LD.CIT(A)) AND THE LD.CIT(A) CONFI RMED THE ADDITION OF THE AO. THE LD.CIT(A) HAS ELABORATELY DISCUSSED THE IS SUE IN HIS ORDER IN PARA NO.4.2 WHICH IS EXTRACTED FOR THE SAKE OF CONVENIEN CE IS AS UNDER: 4.2 AS PER PROVISIONS OF SECTION 234C, INTEREST UN DER THIS SECTION ATTRACTS WHEN THE ASSESSEE WHO IS LIABLE TO PAY ADVANCE TAX FAILS TO PAY OR PAYMENT OF INSTALLMENTS OF ADVANCE TAX TILL A SPECIFIED DATE IN THE PREVIOUS Y EAR FALLS SHORT OF SPECIFIED PERCENTAGE OF TAX DUE ON THE RETURNED INCOME AND SUCH INTEREST SH ALL BE CALCULATED AT ONE PERCENT PER MONTH FOR A PERIOD OF THREE MONTHS. SO, THE SHORTFA LL I.E., THE AMOUNT ON WHICH INTEREST U/S. 234C IS CHARGED, IS COMPUTED WITH REFERENCE TO TAX DUE ON THE RETURNED INCOME. AS PER EXPLANATION TO SECTION 234C(1), TAX DUE ON THE RETU RNED INCOME IS TAX CHARGEABLE ON THE TOTAL INCOME DECLARED IN THE RETURN OF INCOME FURNI SHED BY THE ASSESSEE AS REDUCED BY THE TDS , TCS, ETC., THE APPELLANT IS LIABLE TO PAY ADV ANCE TAX GOING BY HER TAX LIABILITY ON THE TOTAL INCOME OF THE YEAR AS DECLARED IN THE RETURN FURNISHED U/S.148 AND BECAUSE NO ADVANCE TAX WAS PAID, WHOLE OF THE ADVANCE TAX DUE ON SPECIFIED DATES BECOMES THE SHORT FALL TILL THAT QUARTER. IT IS IMPORTANT TO NOTE THA T INTEREST U/S.234B OR 234C IS COMPENSATORY INTEREST LEVIED FOR NOT CORRECTLY ESTIMATING THE IN COME OF THE YEAR CHARGEABLE TO TAX AND FOR NOT PAYING APPROPRIATE ADVANCE TAX INSTALLMENTS DUR ING THE PREVIOUS YEAR. IT IS CLEAR FROM THE OPENING WORDS OF SECTION 234C THAT INTEREST UND ER THIS SECTION ATTRACTS IN CASES OF TOTAL FAILURE OF ADVANCE TAX ALSO. THE DISPUTE, THEREFORE , BOILS DOWN TO A LIMITED POINT OF WHETHER RETURN OF INCOME FURNISHED BY THE ASSESSEE PURSUANT TO NOTICE U/S 148 CAN BE THE BASIS FOR COMPUTING THE TAX DUE ON THE RETURNED INCOME AND CO NSEQUENT INTEREST U/S.234C. A PLAIN READING OF SECTION 234C REVEALS NO SUCH BAR OR DIST INCTION. ANY RETURN FURNISHED BY THE ASSESSEE, WHETHER U/S.139 OR U/S.148, FORMS THE BAS IS FOR COMPUTING TAX DUE ON THE INCOME RETURNED THEREIN. UNDER NORMAL CIRCUMSTANCES , AS PER PROVISIONS OF SECTION 139(1), ANY ASSESSEE WHOSE TOTAL INCOME IN A YEAR EXCEEDS T AXABLE INCOME IS REQUIRED TO FILE RETURN OF INCOME BY A SPECIFIED DATE. SUCH RETURN IS ALLOW ED TO BE FILED WITHIN AN EXTENDED DATE AS PER PROVISIONS OF SECTION 139(4). WHILE FURNISHING THESE RETURNS, TAX LIABILITY AND INTEREST IS COMPUTED ON THE INCOME DECLARED AFTER TAKING INTO A CCOUNT ADVANCE TAX PAID, TDS ETC., AND SELF ASSESSMENT TAX IS PAID. FURTHER, ANY ASSESSEE IS ALLOWED TO FILE A REVISED RETURN TO CORRECT ANY ERRORS OR OMISSIONS IN THE RETURN EARLI ER FILED. IN A CASE WHERE A VALID REVISED RETURN IS FILED, SUCH REVISED RETURN SUBSTITUTES TH E ORIGINAL RETURN. CONSEQUENTLY, THE TOTAL INCOME DECLARED IN THE REVISED RETURN FILED BY AN A SSESSEE SHALL BE THE BASIS FOR COMPUTING TAX AND INTEREST LIABILITY U/S.234B AND 234C. EVEN WHERE AN ASSESSEE FILES A RETURN BEYOND TIME LIMIT ALLOWED U/S.139(4), THE TOTAL INCOME DEC LARED THEREIN IS THE BASIS FOR COMPUTING ITA NO.714/MDS/2016 :- 4 -: TAX AND INTEREST LIABILITY. ANOTHER OCCASION OF FUR NISHING OF RETURN OF INCOME BY ANY ASSESSEE ARISES WHEN THE AO ISSUES NOTICE U/S.148 AN D THE RETURN FILED PURSUANT TO THAT SHALL BECOME THE LATEST AND SUBSISTING RETURN FOR T HAT YEAR. SINCE THIS RETURN IS ALSO FURNISHED BY THE ASSESSEE, THERE IS NO REASON TO BA R THE APPLICATION OF SECTION 234C TO RETURN FILED PURSUANT TO NOTICE U/S.148. FURTHER, A S PER THE PROVISIONS OF SECTION 148(1), ALL OTHER PROVISIONS OF THE ACT SHALL, SO FAR AS MAY BE , APPLY TO THE RETURN FILED IN RESPONSE TO NOTICE UNDER THIS SECTION AS IF IT IS A RETURN FURN ISHED U/S.139. THUS, INTEREST U/S.234C IS ALSO LEVIABLE ON THE BASIS OF RETURN FURNISHED IN R ESPONSE TO NOTICE U/S.148, IF THE ADVANCE TAX PAYMENTS FALL SHORT OF TAX DUE ON THE INCOME DE CLARED IN SUCH RETURN. IN THE LIGHT OF THE ABOVE DISCUSSION, I REJECT THE ARGUMENTS OF THE AR AND THE RELEVANT GROUNDS OF APPEAL. ACCORDINGLY, INTEREST LEVIED U/S. 234C IS SUSTAINED . 4.0 AGGRIEVED BY THE ORDER OF THE LD.CIT(A) THE ASSESS EE IS ON APPEAL BEFORE US. APPEARING FOR THE ASSESSEE THE LEARNED AUTHORIZED REPRESENTATIVE (HEREINAFTER REFERRED TO AS LD.AR) ARGUED THAT TH E INTEREST U/S.234C IS CHARGEABLE ON TOTAL INCOME DECLARED IN THE RETURNS FURNISHED U/S.139(1) OF THE ACT AND NOT ON DIFFERENCE OF INCOME FILED IN R ESPONSE TO THE NOTICE ISSUED U/S.148 OF THE ACT(SECOND RETURN). ACCORDI NG TO THE ASSESSEE, TAX DUE ON RETURNED INCOME IN SEC.234C OF THE ACT, REFE RS ONLY THE RETURN OF INCOME FURNISHED U/S.139(1) OF THE ACT BUT NOT THE RETURN FILED IN RESPONSE TO THE NOTICE ISSUED U/S.148 OF ACT. ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPRESENTATIVE (HEREINAFTER REFERRED T O AS LD.DR) RELIED ON THE LOWER AUTHORITIES ORDERS AND CONTENDED THAT THE INTEREST U/S.234C IS CHARGEABLE ON THE TOTAL INCOME ADMITTED BY THE ASSE SSEE IN THE RETURN FILED IN RESPONSE TO THE NOTICE ISSUED U/S.148 OF A CT. 5.0 WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MAT ERIAL PLACED ON RECORD. WE HAVE CAREFULLY GONE THROUGH THE PROVISIONS OF S EC. 234C OF ACT, WHICH READS AS UNDER: ITA NO.714/MDS/2016 :- 5 -: [ INTEREST FOR DEFERMENT OF ADVANCE TAX. 78 234C. (1) 79 [WHERE IN ANY FINANCIAL YEAR, 80 [ ( A ) AN ASSESSEE, OTHER THAN AN ELIGIBLE ASSESSEE IN RES PECT OF THE ELIGIBLE BUSINESS REFERRED TO IN SECTION 44AD , WHO IS LIABLE TO PAY ADVANCE TAX UNDER SECTION 208 HAS FAILED TO PAY SUCH TAX OR ( I ) THE ADVANCE TAX PAID BY SUCH ASSES SEE ON ITS CURRENT INCOME ON OR BEFORE THE 15TH DAY OF JUNE IS LESS THAN FIFTEEN PER CENT OF T HE TAX DUE ON THE RETURNED INCOME OR THE AMOUNT OF SUCH ADVANCE TAX PAID ON OR BEFORE THE 15TH DAY OF SEPTEMBER IS LESS THAN FORTY-FIVE PER CENT OF THE T AX DUE ON THE RETURNED INCOME OR THE AMOUNT OF SUCH ADVANCE TAX PAID ON OR BEFORE THE 15TH DAY OF DECEMBER IS LESS THAN SEVENTY- FIVE PER CENT OF THE TAX DUE ON THE RETURNED INCOME, THEN, THE ASSESSEE SHALL 81 BE LIABLE TO PAY SIM PLE INTEREST AT THE RATE OF ONE PER CENT PER MONTH FOR A PERIOD OF THREE MON THS ON THE AMOUNT OF THE SHORTFALL FROM FIFTEEN PER CENT OR FORTY-FIVE PER C ENT OR SEVENTY- FIVE PER CENT, AS THE CASE MAY BE, OF THE TAX DUE ON THE RETURNED INCOME; ( II ) THE A DVANCE TAX PAID BY THE ASSESSEE ON THE CURRENT INCO ME ON OR BEFORE THE 15TH DAY OF MARCH IS LESS THAN THE TAX DUE ON THE R ETURNED INCOME, THEN, THE ASSESSEE SHALL BE LIABLE TO PAY SIMPLE INTEREST AT THE RATE OF ONE PER CENT ON THE AMOUNT OF THE SHORTFALL FROM THE TAX DUE ON THE RETURNED INCOME: PROVIDED THAT IF THE ADVANCE TAX PAID BY THE ASSESSEE ON THE CURRENT INCOME, ON OR BEFORE THE 15TH DAY OF JUNE OR THE 15TH DAY OF SEPT EMBER, IS NOT LESS THAN TWELVE PER CENT OR, AS THE CASE MAY BE, THIRTY-SIX PER CENT OF THE TAX DUE ON THE RETURNED INCOME, THEN, THE ASSESSEE SHALL NOT BE LIABLE TO PAY ANY I NTEREST ON THE AMOUNT OF THE SHORTFALL ON THOSE DATES; ] 81A [ ( B ) AN ELIGIBLE ASSESSEE IN RESPECT OF THE ELIGIBLE BUS INESS REFERRED TO IN SECTION 44AD , WHO IS LIABLE TO PAY ADVANCE TAX UNDER SECTION 208 HAS FAILED TO PAY SUCH TAX OR THE ADVANCE TAX PAID BY THE ASSESSEE ON ITS CURRENT INC OME ON OR BEFORE THE 15TH DAY OF MARCH IS LESS THAN THE TAX DUE ON THE RETURNED INCO ME, THEN, THE ASSESSEE SHALL BE LIABLE TO PAY SIMPLE INTEREST AT THE RATE OF ONE PER CENT ON THE AMOUNT OF THE SHORT FALL FROM THE TAX DUE ON THE RETURNED INCOME: ] 82 [ PROVIDED THAT NOTHING CONTAINED IN THIS SUB-SECTION SHALL A PPLY TO ANY SHORTFALL IN THE PAYMENT OF THE TAX DUE ON THE RETURNED INCOME WHERE SUCH SHORTFALL IS ON ACCOUNT OF UNDER- ESTIMATE OR FAILURE TO ESTIMATE ( A ) THE AMOUNT OF CAPITAL GAINS; OR ( B ) INCOME OF THE NATURE REFERRED TO IN SUB-CLAUSE ( IX ) OF CLAUSE ( 24 ) OF SECTION 2 ; 82A [ OR ] 82A [ ( C ) INCOME UNDER THE HEAD 'PROFITS AND GAINS OF BUSINES S OR PROFESSION' IN CASES WHERE THE INCOME ACCRUES OR ARISES UNDER THE SAID HEAD FO R THE FIRST TIME, ] ITA NO.714/MDS/2016 :- 6 -: AND THE ASSESSEE HAS PAID THE WHOLE OF THE AMOUNT O F TAX PAYABLE IN RESPECT OF INCOME REFERRED TO IN CLAUSE ( A ) OR CLAUSE ( B ) 82A [ OR CLAUSE ( C ) ] , AS THE CASE MAY BE, HAD SUCH INCOME BEEN A PART OF THE TOTAL INCOME, AS PART OF THE 83 [REMAINING INSTALLMENTS OF ADVANCE TAX WHICH ARE DUE OR WHERE NO SUCH INSTALLMENTS ARE DUE], BY THE 31ST DAY OF MARCH OF THE FINANCIAL YEAR:] 84 [ PROVIDED FURTHER THAT NOTHING CONTAINED IN THIS SUB-SECTION SHALL AP PLY TO ANY SHORTFALL IN THE PAYMENT OF THE TAX DUE ON THE RETURNED INCOME W HERE SUCH SHORTFALL IS ON ACCOUNT OF INCREASE IN THE RATE OF SURCHARGE UNDER SECTION 2 O F THE FINANCE ACT, 2000 (10 OF 2000), AS AMENDED BY THE TAXATION LAWS (AMENDMENT) ACT, 2000 (1 OF 2001), AND THE ASSESSEE HAS PAID THE AMOUNT OF SHORTFALL, ON OR BEFORE THE 15TH DAY OF MARCH, 2001 IN RESPECT OF THE INSTALLMENT OF ADVANCE TAX DUE ON THE 15TH DAY OF J UNE, 2000, THE 15TH DAY OF SEPTEMBER, 2000 AND THE 15TH DAY OF DECEMBER, 2000 :] 85 [ PROVIDED ALSO THAT NOTHING CONTAINED IN THIS SUB-SECTION SHALL AP PLY TO ANY SHORTFALL IN THE PAYMENT OF THE TAX DUE ON THE RETURNED INCOME WHERE SUCH SHORTFALL IS ON ACCOUNT OF INCREASE IN THE RATE OF SURCHARGE UNDER SECTION 2 OF THE FIN ANCE ACT, 2000 (10 OF 2000) AS AMENDED BY THE TAXATION LAWS (AMENDMENT) ACT, 2001 (4 OF 2001) AND THE ASSESSEE HAS PAID THE AMOUNT OF SHORTFALL ON OR BEFORE THE 15TH DAY OF MA RCH, 2001 IN RESPECT OF THE INSTALLMENT OF ADVANCE TAX DUE ON THE 15TH DAY OF JUNE, 2000, THE 15TH DAY OF SEPTEMBER, 2000 AND 15TH DAY OF DECEMBER, 2000.] 86 [ EXPLANATION. IN THIS SECTION, 'TAX DUE ON THE RETURNED INCOME' MEANS THE TAX CHARGEABLE ON THE TOTAL INCOME DECLARED IN THE RETURN OF INCOM E FURNISHED BY THE ASSESSEE FOR THE ASSESSMENT YEAR COMMENCING ON THE 1ST DAY OF APRIL IMMEDIATELY FOLLOWING THE FINANCIAL YEAR IN WHICH THE ADVANCE TAX IS PAID OR PAYABLE, A S REDUCED BY THE AMOUNT OF, ( I ) ANY TAX DEDUCTIBLE OR COLLECTIBLE AT SOURCE IN ACCO RDANCE WITH THE PROVISIONS OF CHAPTER XVII ON ANY INCOME WHICH IS SUBJECT TO SUCH DEDUCTION OR COLLECTION AND WHICH IS TAKEN INTO ACCOUNT IN COMPUTING SUCH TOTAL INCOME; ( II ) ANY RELIEF OF TAX ALLOWED UNDER SECTION 90 ON ACCOUNT OF TAX PAID IN A COUNTRY OUTSIDE INDIA; ( III ) ANY RELIEF OF TAX ALLOWED UNDER SECTION 90A ON ACCOUNT OF TAX PAID IN A SPECIFIED TERRITORY OUTSIDE INDIA REFERRED TO IN THAT SECTION ; ( IV ) ANY DEDUCTION, FROM THE INDIAN INCOME-TAX PAYABLE, ALLOWED UNDER SECTION 91 , ON ACCOUNT OF TAX PAID IN A COUNTRY OUTSIDE INDIA; AND ( V ) ANY TAX CREDIT ALLOWED TO BE SET OFF IN ACCORDANCE WITH THE PROVISIONS OF SECTION 115JAA 87 [OR SECTION 115JD ].] (2) THE PROVISIONS OF THIS SECTION SHALL APPLY IN R ESPECT OF ASSESSMENTS FOR THE ASSESSMENT YEAR COMMENCING ON THE 1ST DAY OF APRIL, 1989 AND S UBSEQUENT ASSESSMENT YEARS.]] CLOSERELOAD CORRESPONDING CITATION ITA NO.714/MDS/2016 :- 7 -: 6.0 NOW, THE QUESTION BEFORE US IS WHETHER TO CHARGE I NTEREST U/S.234C ONLY ON THE INCOME DISCLOSED IN THE RETURN OF INCOM E FILED U/S.139 OR THE INCOME DISCLOSED IN THE RETURN OF INCOME FILED U/S. 148. AS PER SEC.234C, THE ASSESSEE IS LIABLE TO PAY SIMPLE INTEREST @1% O N THE AMOUNT OF SHORTFALL FROM THE TAX DIFFERENCE ON THE RETURNED I NCOME. IT DOES NOT DISTINGUISH THE INCOME ADMITTED BY THE ASSESSEE U/S .139 OR SEC.148, WHICH IS A PROVISION TO BRING THE INCOME ESCAPED FR OM THE ASSESSMENT FROM THE TAX NET. THE INCOME ADMITTED BY THE ASSES SEE IN RESPONSE TO THE NOTICE ISSUED U/S.148 IS WITHIN THE KNOWLEDGE OF TH E ASSESSEE AND THE ASSESSEE SHOULD HAVE ESTIMATED THE ADVANCE TAX AND PAID THE SAME ON TOTAL INCOME. THE PROVISO TO SEC.234C REFERS TO ON LY TWO EXCEPTIONS AS UNDER: ( A ) THE AMOUNT OF CAPITAL GAINS; OR ( B ) INCOME OF THE NATURE REFERRED TO IN SUB-CLAUSE ( IX ) OF CLAUSE ( 24 ) OF SECTION 2 ; 82A [ OR ] 82A INCOME UNDER THE HEAD 'PROFITS AND GAINS OF BUSINES S OR PROFESSION' IN CASES WHERE THE INCOME ACCRUES OR ARISES UNDER THE SAID HEAD FO R THE FIRST TIME, ] NO OTHER EXCEPTION IS PROVIDED U/S.234C FOR CHARGING INTEREST. THEREFORE, WE ARE OF THE CONSIDERED OPINION THAT TH E RETURNED INCOME INCLUDES THE INCOME ADMITTED IN RESPONSE TO THE NOT ICE ISSUED U/S.148 ALSO. THEREFORE, WE ARE UNABLE TO ACCEPT THE CONTE NTION OF THE ASSESSEE THAT THE INTEREST U/S.234C IS CHARGEABLE ONLY IN RE SPECT OF INCOME RETURNED U/S.139(1) BUT NOT THE INCOME ADMITTED IN THE REVIS ED RETURN OF INCOME. AS DISCUSSED ABOVE, EXCEPT IN TWO CIRCUMSTANCES PRO VIDED IN SEC.234C AS ITA NO.714/MDS/2016 :- 8 -: PER THE PROVISO REFERRED ABOVE, IN ALL THE REMAININ G CASES INTEREST U/S.234C IS CHARGEABLE WITHOUT ANY EXCEPTION. THIS VIEW IS SUPPORTED BY THE HONBLE JURISDICTIONAL HIGH COURT DECISION IN T HE CASE OF MRF LTD. V. DEPUTY COMMISSIONER OF INCOME-TAX, LARGE TAX PAYER UNIT, CHENNAI, REPORTED IN [2016] 76 TAXMANN.COM 282 (MADRAS). THEREFORE, WE FIND NO ERROR IN THE ORDER OF LD.C IT(A) AND THE SAME IS UPHELD. 7.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST JANUARY, 2017, AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( !' . . # $ % ) (D.S.SUNDER SINGH) ' /ACCOUNTANT MEMBER /CHENNAI, 5 /DATED: 31 ST JANUARY, 2017. TLN 0 .2$6 76+2 /COPY TO: 1. ,- /APPELLANT 4. # 82 /CIT 2. ./,- /RESPONDENT 5. 69 .2 /DR 3. # 82 ( ) /CIT(A) 6. '* < /GF