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2021 (8) TMI 5 - AT - Income TaxLevy of interest u/s 234B and 234C - Liability of advance tax - income from partnership firm in the hands of partner - contentions of the Ld. DR that the provisions of Sec. 207 and 208 of the Act cannot applied independently - HELD THAT:- We find the provisions of Sec. 207(2)(a)&(b) are applicable to the assessee. We understand that the liability to pay the advance tax does not apply to an individual who is resident in India and such individual does not have any income chargeable to tax under the head profit and gains of business or profession and further the age of the individual is more than 60 years during the previous year. We on applying the second proviso to Sec. 207(2) of the Act find that the assessee is a senior citizen, more than 60 years of age as confirmed by the CIT(A) on referring to the date of birth of the assessee in the pan card. In the F.Y 2015-16 relevant to A.Y 2016-17 the assessee is 71 years old. The assessee has filed the return of income ITR Form no.3 for the A.Y 2016-17 applicable to individuals and HUF being partners in firm and not carrying on business or profession under any proprietorship. We find that the assessee has filed the return of income on 02.08.2016 disclosing the income under income from business or profession as Rs. Nil. As per the provisions of Sec. 10(2A) of the Act, the share of profit of the partnership firm is exempted in the hands of the partner. Whereas, the provisions of Sec. 208 of the Act interpreted by the CIT(A) that it is a general provision applicable for all the individual where the tax liability exceeds more than ₹ 10,000/- is not acceptable. We find both the provisions u/Sec 207 & Sec 208 are not inclusive and are independently applicable. The assessee case falls within the purview of provisions of section 207(2) of the Act which cannot be disputed. Considering the facts and the information on record, we do not find merits in the submissions of the Ld. DR and accordingly set aside the CIT(A) order and direct the assessing officer to delete the interest levied u/s 234B and 234C of the act and allow the grounds of appeal in favour of the assessee.
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