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2013 (6) TMI 630 - AT - Income TaxInterest under section 234B - defaults in payment of advance tax - AO excluded not only the interest u/s 234C included in the self assessment tax but also the interest chargeable from 1.4.98 to 30.11.98 from the sum of Rs. 81.30 crore - Held that:- Action of the AO was not justified. The interest till the date of self assessment tax payment has to be computed u/s 234B (2) (i) in the prescribed manner and from the said interest, interest u/s 234B included in the self assessment tax is required to be reduced. The interest for the period beyond the date of self assessment tax payment i.e. 30.11.98 is requried to be computed under section 234B (2) (ii) on the amount by which self assessment and advance tax paid falls short of the assessed tax at the specified rates. In this case self assessment tax after excluding the interest u/s 234C was only Rs. 24.50 crore. Therefore, only this sum is required to be reduced from the shortfall of Rs. 81.30 crore for further computation of interest. The sum of Rs. 13,00,00,000/- which is the interest computed for the period from 1.4.98 to 30.11.98 is not required to be excluded from self assessment tax as the same was not payable under section 140 A but became payable on regular assessment. In favour of assessee. Interest u/s 234D - excess refund - Held that:- The provisions of section 234 D apply only in cases where the refund has been granted u/s 143(1) which is later found excessive on regular assessment. Therefore, if there is no refund granted u/s 143(1) the question of levy of interest u/s 234 D does not arise. AO, therefore, is directed to verify the claim of assessee and delete the ineterest if no refund had been granted to assessee under section 143 (1). In favour of assessee.
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