Ramachandran Nair, J.

1. The common question raised in these two appeals filed by the Revenue against the very same assessee is whether in a reassessment completed under Section 153A read with Section 143 (1) of the Income Tax Act (hereinafter referred to as the Act for short), interest for short payment of advance tax is to be demanded for the period provided under Section 234B(1) or Section 234B(3) of the Act. While the case of the department is that interest is leviable under Section 234B(1) for the period stated therein, the case of the assessee is that interest could be levied under Section 234B(3) for the limited period specified therein.

2. We have heard learned Standing Counsel appearing for the Revenue and Shri.Arun Raj learned counsel appearing for the respondent assessee.

3. The respondent filed Income Tax returns for the assessment years 2001-02 and 2002-03 on the due dates i.e. on 30th October of the assessment years. Both the returns were processed and proceedings issued under Section 143(1) within the time provided under the Act. Since there was short payment of advance tax for the assessment year 2001-02 interest under Section 234B(1) was charged for the period specified therein, on which there is no dispute. For the next assessment year, i.e. 2002-2003, no interest was charged under Section 234B as there was no short payment of advance tax on the income then assessed. However, later, the Department conducted search in the premises of the assessee and noticed escapement of income. Pursuant to the search, the assessee was called upon to furnish returns disclosing undisclosed income, and the assessee in fact returned undisclosed income for both the assessment years. The Assessing Authority processed the returns so filed, determined the tax payable thereon under Section 143(1) and based on the shortage in payment of advance tax with reference to the revised income assessed, the Assessing Authority computed interest payable under Section 234B (1) for the periods provided therein. The assessee filed rectification application before the Assessing Officer contending that interest in reassessment could be charged only under Section 234B(3), whereunder the period for which interest could be charged is from the date of first completion of Section 143(1) proceedings till the date of the revision of assessment, which was done under Section 143(1) read with Section 153A and not from the beginning of the financial year following the accounting year in which advance tax was payable as provided under Section 234B(1) of the Act. The Assessing Officer rejected the rectification application on the ground that the reassessment under Section 153A itself is completed by processing the returns under Section 143(1) and so much so interest is payable under Section 243B(1) and not under Section 234B(3) as claimed by the assessee. This order was challenged in appeal. Though the first appellate authority dismissed the appeal, the Tribunal held in favour of the assessee against which the Revenue has filed these appeals.

4. The question to be decided is the application and meaning of Sections 234B(1) and 234B(3) of the Act, and therefore, we extract hereunder these provisions for easy reference:-

"234B(1) Subject to the other provisions of this section, where, in any financial year, an assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of (one) per cent for every month or part of a month comprised in the period from the 1st day of April next following such financial year (to the date of determination of total income under sub-section(1) of section 143 (and where a regular assessment is made, to the date of such regular assessment, on an amount)) equal to the assessed tax or, as the case may be, o