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2017 (11) TMI 798 - AT - Income TaxNon-granting of credit of cash seized and pay orders as advance tax against the income tax liability on the income offered in the statement u/s 132(4) - interest charged under section & 234B and 234C - Held that:- Money lying with the department amounting to ₹ 75,50,860/- deserved to be adjusted as advance tax liability and the interest charged under section 234C qua third quarter for non payment of advance tax is not at all legal and justified. u/s 234C, we are of the considered opinion, that the interest for non-default for non payment of tax should not be charges for the last 3rd installment and same is the position with regards to charging interest u/s 234B of the Act. Direct the AO to allow sum to be adjusted against the advance tax and consequently, the interest u/s 234B and 234C for the third quarter installment shall not be chargeable. Accordingly the AO is directed to calculate the interest u/s 234B & 234C after allowing credit of ₹ 75,50,860/- in the advance tax if any. Appeal of the assessee stands allowed.
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