Vinod Chandran, J.

1. The Revenue is in appeal before this Court raising questions of law from the order of the Tribunal, which deleted interest charged under Section 234B(3) of the Income Tax Act, 1961 (for short “Act”). On admission, another Division Bench of this Court, had framed substantial questions of law as raised in the memorandum of appeal. We extract them herein:

1. Whether, on the facts and in the circumstances of the case is the Tribunal right in deleting the interest under section 243B(3) ?

2. Is the charging of interest under section 234B(1) in regular assessment a necessary condition for charging interest under section 234B(3) ?

3. Whether on the facts and in the circumstances of the case the Tribunal is right in law in holding –

i. the assessee is not liable to pay the interest under section 234B(3) of the Act ?

ii. the Assessing Officer was not justified in levying interest on the assessee under section 234B(3) of the Act for the period from 31-3-1995 to 14-3-2002.

2. We are of the opinion that yet another question of law arises from the facts, which is raised, on consent of both the parties. The question of law as so framed by us is as here under:-

Ought not the Tribunal, while deleting the interest levied under Section 234B(3), have considered the peculiar facts in this case; of the assessee having received the entire tax deducted at source and advance tax paid, with interest from the Department, which to the extent of the tax sustained on re-assessment required to be retained as advance tax and directed refund of the interest paid on refund to the extent the assessee was to have satisfied advance tax under Sections 208 and 210 ?

3. For the assessment year 1992-93, the assessee filed a return and assessment was completed under Section 143(3) on 30-03-1995 fixing the total income at Rs.55,35,390/-. The assessee paid advance tax of Rs.1,32,032/- and had credit of TDS coming to Rs.3,82,952/-. The advance tax paid hence totaled Rs.5,12,984/-. On 18-09-1995 a refund due of Rs.1,10,615/- was adjusted towards the demand. In appeal from the assessment order under Section 143(3), the Commissioner of Income Tax (Appeals) [CIT hereafter] deleted the additions and remanded the matter, upon which, the order giving effect to the order in appeal worked out the income of the assessee for the year at Rs.11,080/-. There was hence no advance tax payment required and the tax so paid and TDS were liable to be refunded. A re-assessment was proposed under Section 147 and finalised by order dated 20-10-1997, recomputing the total income at Rs.80,55,145/-. There was a payment of Rs.3,97, 252/- on 03-08-1998 and 29-09-1998. In an appeal the CIT recomputed the total income of the assessee at Rs.5,36,410/-. By that time, Rs.8,76,426/- was refunded on 04-03-1996, which included the advance tax & TDS of Rs.5,12,984/- the refund adjusted of Rs.1,10, 615/- and interest of Rs.2,52,828/-. On further orders passed on 10-03-1999, a further refund of Rs.1,72,705/- was made.

4. A further re-assessment proceedings initiated, computed the total income of the assessee at Rs.9,36,870/-. Eventually, these last re-assessments after challenge before the Tribunal and the High Court, resulted in a computation of a total income of Rs.23,32,002/-. In giving effect to the said order, the Assessing Officer worked out the total demand as follows:-

“Income tax due thereon	Rs.4,09,860/-
Add: Sur-charge @ 12%	Rs. 49,183/-
	Rs.4,59,043/-
Less: Pre-paid taxes:
1. TDS Rs.3,82,952/-
2. Advance tax Rs.1,30,032/-
	Rs.5,12,983/-
Excess paid	Rs. 53,940/-
Less: Interest u/s234B(3) (31-3-95 to 14-3-02)	Rs.6,85,058/-
Balance payable	Rs.6,31,118/-
Less: Demand adjusted from the Refunds due to K.C.Thomas for the AY 87-88, 88-89, 90-91 & 91-92 on 18-9-95	Rs.1,10,615/-