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2017 (3) TMI 571 - AT - Income TaxCharging of interest u/s.234C - Interest for deferment of advance tax - whether to charge interest u/s.234C only on the income disclosed in the return of income filed u/s.139 or the income disclosed in the return of income filed u/s.148? - Held that:- Sec.234C, the assessee is liable to pay simple interest @1% on the amount of shortfall from the tax difference on the returned income. It does not distinguish the income admitted by the assessee u/s.139 or Sec.148, which is a provision to bring the income escaped from the assessment from the tax net. The income admitted by the assessee in response to the notice issued u/s.148 is within the knowledge of the assessee and the assessee should have estimated the advance tax and paid the same on total income. No other exception is provided u/s.234C for charging interest. Therefore, we are of the considered opinion that the returned income includes the income admitted in response to the notice issued u/s.148 also. Therefore, we are unable to accept the contention of the assessee that the interest u/s.234C is chargeable only in respect of income returned u/s.139(1) but not the income admitted in the revised return of income. As discussed above, except in two circumstances provided in Sec.234C as per the proviso referred above, in all the remaining cases interest u/s.234C is chargeable without any exception. This view is supported in the case of MRF Ltd. v. Deputy Commissioner of Income-tax, Large Tax Payer Unit, Chennai [2016 (11) TMI 1011 - MADRAS HIGH COURT].
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