Ita/1689/2009 Of The South Indian Bank Ltd.,Trichur v. The Commissioner Of Income Tax,Trichur

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN WEDNESDAY, THE 2ND DECEMBER 2009 / 11TH AGRAHAYANA 1931 ITA.No. 1689 of 2009() ---------------------- ITA.40/COCH/2008 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT --------------------------------------- THE SOUTH INDIAN BANK LTD, TRICHUR. BY ADV. SRI.P.BALAKRISHNAN (E) RESPONDENT(S): RESPONDENT ------------------------- THE COMMISSIONER OF INCOME TAX,TRICHUR. ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS INCOME TAX APPEAL HAVIN BEEN FINALLY HEARD ON 02/12/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: -------------------------------------------- -------------------------------------------- Dated this the 2nd day of December, 2009 JUDGMENT Ramachandran Nair, J. The question raised is whether the Tribunal was justified insustaining levy of interest under Section 234B(4) of the I.T. Actpursuant to rectification of assessment under Section 154 of the Act.We have heard Sri. P. Balakrishan, counsel appearing for the appellantand standing counsel appearing for the respondent. We have todaydisposed of connected appeal of the very same assessee, I.T.A.No.1611 of 2009, wherein we have upheld similar levy of interest underSection 234B(3) pursuant to reassessment completed under Section147. In our view the reasoning given in the said judgment squarelyapplies to the facts of this case as well. Besides this, proceedings underSection 154 is squarely covered by Section 234B(4) of the Act andtherefore pursuant to rectification carried under the said provision, theOfficer is bound to levy interest in the short fall of advance tax underSection 234B(3). We are also of the view that if there is failure to charge interest under Section 234B(1) in the regular assessment, whichis mandatory in nature, such omission itself could be made up inSection 154 proceedings through rectification of assessment. Wetherefore dismiss the appeal filed by the assessee. (C.N.RAMACHANDRAN NAIR) Judge. (V.K. MOHANAN) Judge. kk