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2015 (6) TMI 57 - AT - Income TaxLevy of interest u/s. 234B - payment of advance tax on estimated basis - assessee accounted the said merchant banking income on actual realization basis/receipt basis and claimed that this is as per consistent method of accounting followed by the assessee right from the beginning - Held that:- There is no quarrel on the point that charging of interest u/s. 234B is mandatory but firstly it is to be determined whether the assessee has committed default in payment of advance tax which is a necessary condition for levy of interest u/s. 234B as mandatory in nature. In view of the facts and circumstances of the case and by following the judgment of Hon'ble Jurisdictional High Court in Prime Securities Ltd. Versus Assistant Commissioner of Income Tax (Investigation) [2010 (12) TMI 475 - Bombay High Court] we are of the considered opinion that there is no default on the part of the assessee in payment of advance tax which was as per the estimated income of the assessee and is consistent with the practice followed by the assessee right from the beginning which was accepted by the revenue for earlier years. Accordingly, we delete the interest levied u/s. 234B. - Decided in favour of assesse.
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