|Question And Answer|
|Subject:||CHARGING OF INTEREST U/S 234B|
|Answered by:||Advocate Shashi Ashok Bekal|
|Tags:||Interest, order giving effect|
|Date:||October 21, 2021|
In case of assessee, ITAT has set aside the assessment order to the AO with directions to re-asses the income. Assessing officer has passed the order as per the direction of the Hon’ble ITAT.
Whether after decision of Tribunal, Assessing Officer is duty bound to charge interest under section 234B up to date of original order of assessment passed by him and not up to date of reassessment order passed by him in pursuance of order of Tribunal.
Section 234B of the Income-tax Act, 1961 (Act) pertains to interest for defaults in payment of advance tax.
As per section 234B(1) of the Act, interest is liable from the date of failure to pay to the date of assessment.
Where the case of the assessee was set aside and remanded back to the Ld. Assessing Officer; it would be from the period starting from failure to pay to the date of fresh assessment.
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