Meaning of “Assessed tax “

Case Name :  Kaushal construction co. Vs. Cit 

Citation : [1980] 126 itr 466 (mp)

Court : Madhya pradesh high court

Section : 271

Meaning : The assessed tax even in cases of reassessment would be that tax which is assessed on the total income including the income that had escaped assessment. This is also clear from the explanation which says that assessed tax means the tax as reduced by the sum, if any, deducted at source under chapter xvii-b or paid in advance under chapter xvii-c. If the intention of the law-makers was that assessed tax should mean the difference between the tax assessed at the stage of reassessment and the tax originally assessed, the explanation would have said so.

Case Name : Kanchanjunga investments (p.) Ltd. Vs. Ito 

Citation : [1988] 31 ttj (ahd. – Trib.) 392

Court : Itat-ahmedabad

Section : 207 to 216

Meaning : A bare reading of the provisions of section 215(5) would disclose that for the purposes of sections 215, 217 and 273, the term ‘assessed tax’ has been given a specific meaning and according to such meanings, assessed tax would mean the tax determined on the basis of regular assessment as reduced by the amount of tax deductible in accordance with the provisions of sections 192 to 194, etc. In the above meanings given to the term ‘assessed tax’ in the language of section 215(5), the expression ‘assessed tax’ used in section 215(1) shall have to be understood as the tax finally assessed as reduced by the amount of tax deductions in accordance with the provisions of sections 192 to 194, etc. It may be noted that section 215 permits levy of interest only on the difference between the assessed tax and advance tax actually paid and so long as the said section does that, the amount of tax deductible at source will have to be taken note of. Reading the meaning of the expression ‘assessed tax’ in that way the word ‘deductible’ occurring in the language of section 215(5) could not be confused for the meaning of the term ‘deducted’. The distinction between the meaning of the word ‘deductible’ and ‘deducted’ shall have to be kept in mind while appreciating the meaning of the expression ‘assessed tax’ used in the language of section 215. Thus, credit for the amount of tax deducted at source should be given for purposes of section 215.

Case Name : Cit vs. Tulsyan nec ltd.

Citation : [2011] 196 Taxman 181/330 itr 226/237 ctr 105/

Court : Supreme court

Section :234a

Meaning : Under section 234b, ‘assessed tax’ means the tax on the total income determined under section 143(1) or on regular assessment under section 143(3) as reduced by the amount of tax deducted or collected at source in accordance 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.

Case Name : Jt. Cit vs. Rolta india ltd. 

Citation : [2011] 196 Taxman 594/330 itr 470/237 ctr 329/9 taxmann.Com 36 (sc)

Court : Supreme court

Section : 234a

Meaning : The pre-requisite condition for applicability of section 234b is that the assessee is liable to pay tax under section 208 and the expression ‘assessed tax’ is defined to mean the tax on the total income determined under section 143(1) or under section 143(3) as reduced by the amount of tax deducted or collected at source. Thus, there is no exclusion of section 115j/115ja in the levy of interest under section 234b. The expression ‘assessed tax’ is defined to mean the tax assessed on regular assessment which means the tax determined on the application of section 115j/115ja in the regular assessment.

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