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2010 (1) TMI 37 - HC - Income TaxInterest u/s 234B – non payment of advance tax - The ITAT held that interest under Section 234B of the Act cannot be charged in the case of the assessee as the assessee held a bona fide belief that there was no income chargeable to tax because interest paid exceeded the receipt of interest and that the decision of Tuticorin Alkali Chemicals was not applicable in the relevant assessment year 1991-92 – held that - as no advance tax was paid at all by the assessee during the assessment year in question, argument that the Assessing Officer was required to determine various aspects before charging the interest under Section 234B would not be applicable in the instant case - it cannot be disputed that it ultimately turned out that tax was payable on the interest income earned by the assessee and thus, the assessee was liable to pay advance tax as well under Section 208 of the Act, inasmuch as the tax payable on the said income earned was more than ten thousand rupees. In normal course, therefore, he was to compute the said advance tax and pay the same in the manner stipulated in Section 209 and 210 of the Act – there is default in payment of advance tax – interest u/s 234B is payable – ITAT order reversed - decided in favor of revenue
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