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2010 (1) TMI 822 - AT - Income TaxCurrent years' trade credits' u/s 68 of the Act - assessee's contention that the authorities have erred in making addition being 'current year's trade credits' u/s 68 of the Act as the said section applies to Cash Credits only – Held that:- 'any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the assessing officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year'. Since, the assessee had failed to furnish convincing and documentary explanation with regard to the nature and source 'thereof and on the other hand the AO had brought on record with unflinching documentary proof by way of confirmation obtained from the alleged sundry creditors that the brought forward sundry creditors and current year creditors (credits) were not genuine, there was no infirmity in the findings of the lower authorities which require our interference at this stage. It is ordered accordingly. Interest charged u/s 234B of the Act should be restricted to the levy made in 143(1) of the Act – Held that:- interest levied u/s 234B should be restricted to the levy made in the intimation u/s 143(1) is without much force. By virtue of amendment to Act by Finance Act, 2001, with retrospective effect from 1.4.1989, it beyond doubt interest u/s 234B is to be levied on the assessed income and not on the returned income, reassessment u/s 147, interest u/s 234B is imposable only on the amount on which interest was payable u/s 234B is increased. The Tribunal held since, there is excess payment of TDS and advance tax; no interest u/s 234B(3) could be imposed, there was a levy of interest u/s 234B in the intimation passed u/s 143(1), order of the authorities is correct and is in accordance with law and does not warrant any interference, appeal filed by the assessee is dismissed.
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