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2010 (12) TMI 625 - AT - Income TaxInterest u/s 234B and 234C - whether interest u/s 234B and 234C of the Act can be charged for default in payment of advance tax and for deferment of advance tax, respectively, where the payment of tax became due only because of the amendment by way of insertion of Expln. 1(h) to s. 115JB(2) of the Act, the amendment having been made operative retrospectively - Held that: it was noted that from CBDT Order No. F 400/234/95-IT(B), dt. 21st May, 1996, it was clear that the intention of the tax authorities was not to levy interest where any amendment came with retrospective effect - This gets further corroborated from the fact that while processing the return of income, the AO himself did not charge interest under ss. 234B and 234C of the Act - Further, it has been time and again held that where the assessee is under a bona fide belief and based his estimate of income as per the law prevailing at the relevant time, no interest u/s 234B and 234C of the Act is leviable - Decided in favour of assessee
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