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: C .N. RAMACHANDRAN NAIR & V.K. MOHANAN, JJ. -------------------------------------------- I. T. A. No.1689 OF 2009 -------------------------------------------- Dated this the 2nd day of December, 2009 JUDGMENT Ramachandran Nair, J. The question raised is whether the Tribunal was justified in sustaining levy of interest under Section 234B(4) of the I.T. Act pursuant to rectification of assessment under Section 154 of the Act. We have heard Sri. P. Balakrishan, counsel appearing for the appellant and standing counsel appearing for the respondent. We have today disposed of connected appeal of the very same assessee, I.T.A.No. 1611 of 2009, wherein we have upheld similar levy of interest under Section 234B(3) pursuant to reassessment completed under Section 147. In our view the reasoning given in the said judgment squarely applies to the facts of this case as well. Besides this, proceedings under Section 154 is squarely covered by Section 234B(4) of the Act and therefore pursuant to rectification carried under the said provision, the Officer is bound to levy interest in the short fall of advance tax under Section 234B(3). We are also of the view that if there is failure to 2 charge interest under Section 234B(1) in the regular assessment, which is mandatory in nature, such omission itself could be made up in Section 154 proceedings through rectification of assessment. We therefore dismiss the appeal filed by the assessee. (C.N.RAMACHANDRAN NAIR) Judge. (V.K. MOHANAN) Judge. kk 3