Section\u00a0234D\u00a0of the\u00a0Income-tax Act, 1961\u00a0, levies interest on the amount by which a refund is reduced. Section\u00a0234D\u00a0was inserted by the\u00a0Finance Act, 2003\u00a0with effect from June 1, 2003. Explanation 2 was inserted by the\u00a0Finance Act, 2012\u00a0with retrospective effect from June 1, 2003 and declares that the provisions of section\u00a0234D\u00a0shall also apply to an assessment year commencing before June 1, 2003, if the proceedings in respect of such assessment year are completed after that date. Sub-section\u00a0(2)\u00a0of section\u00a0234D\u00a0of the Act would be attracted only if reduction occurs and it cannot be made applicable when there is an increase. Explanation 2 cannot be read in isolation from sub-section\u00a0(2)\u00a0of section\u00a0234D\u00a0of the Act and the entire section should be read as a whole. If such a procedure is adopted, the correct legal position emanates because the charging provision is sub-section\u00a0(1)\u00a0of section\u00a0234D\u00a0of the Act. In the sub-section, namely, sub-section\u00a0(1)\u00a0, in three places, the expression “regular assessment” occurs, namely, in section\u00a0234D(1)(a)\u00a0, section\u00a0234D(1)(b)\u00a0and the remaining portion of section\u00a0234D\u00a0. An order passed under section\u00a0154\u00a0cannot be taken to be the framing of a regular assessment for a year. Accordingly the Court held that \u00a0the regular assessment was completed under section\u00a0143(3)\u00a0of the Act much prior to June 1, 2003, i. e., On March 30, 2001. Hence, no interest can be charged under section\u00a0234D\u00a0of the Act for the assessment year 1998-99. (AY.1998 -99)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 234D : Interest on excess refund \u2013 Reduction of refund \u2013 Interest on excess refund \u2013 Amendment is applicable for regular assessment \u2014 Rectification of assessment after 1-6-2003 \u2014 Not a regular assessment \u2014 Amendment is not applicable . [ S.154 ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8183","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-27Z","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=8183"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8183\/revisions"}],"predecessor-version":[{"id":17387,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8183\/revisions\/17387"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=8183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=8183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=8183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}