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2019 (11) TMI 361 - AT - Income TaxRectification of mistake - Charging of interest u/s 234B and 234C - HELD THAT:- Whether interest under sections 234B and 234C of the Act is to be charged, or not, has been considered by the Tribunal in the case of the ‘Radha Mohan Purshottam Das Agarwal’ Group, consisting of nine appeals, on facts exactly similar, mutatis mutandis, to those present in the case of the assessee presently under appeal and the Tribunal has decided the issue in favour of the assessees Following this view taken we set aside the order of the ld. CIT(A), and direct the Assessing Officer to compute the interest u/s 234B in accordance with the law, if at all it is leviable, only till the date when the assessee made an application to the Department for the adjustment of the cash seized towards the income tax liability. To that extent, we find there is a mistake apparent on record in the order of the Assessing Officer while computing the interest u/s 234B of the Act. Charging of interest under section 234C - search had taken place on 31/03/2011 and the surrender of the income has been made on that very day, therefore, it is not a case of deferment of the income, as the liability to pay the advance tax in the case of the assessee arose only at the moment the income was surrendered by the assessee, i.e., as on 31st March, and not prior to that. Since the liability to pay the advance tax has arisen on 31st March therefore, it cannot be regarded to be a case of deferment of income tax. Therefore, the interest u/s 234C cannot be levied and there has been a mistake apparent on record in the order of the Assessing Officer while levying the interest u/s 234C of the Act. Appeal of the assessee is partly allowed.
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