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2016 (10) TMI 215 - ITAT CHENNAICharging of interest u/sec.234C on return of income filed in response to notice u/sec. 148 - whether no interest u/s.234C of the Act should be charged on Return of income filed in compliance to notice Sec. 148 of the Act as the chargeability provisions are applicable only to the Return of income filed u/s.139(1)? - Held that:- The provisions of charging of interest u/s.234C of the Act is automatic and assessee need not be provided an opportunity. Further, we perused the Explanations to the provisions of Sec. 234C of the Act ‘’the tax due on returned income’’ shall be reduced by (i) tax deducted and collected at source, (ii) the amount of relief of tax allowed under sections 90 and 90A and deduction from the Indian income –tax payable, allowed under section 91, and (iii) tax credit allowed to be set off under section 115JAA/115JD from the tax on the total income. The assessee firm cannot interprete that the ‘’tax due on Return income’’ shall imply only to the Return of income filed u/s.139(1) of the Act were income is declared. The provisions of Sec.234C of the Act are mandatorily applicable in respect of deferment of payment of advance tax as per the rates prescribed in the previous year relevant to subsequent assessment year and interest is charged. We are of the considered opinion that levy of interest u/s.234C of the Act is an automatic and the interpretation of charging of interest u/s.234C of the Act cannot be restricted to the ‘’tax due on Returned income’’ as referred u/sec. 139(1) of the Act is not logical interpretation and cannot be accepted in the Court of law. The ld.CIT(A) has dealt exhaustively on the applicability of provisions and the Explanations and upheld the order of the ld. Assessing Officer, on charging of interest u/sec.234C of the Act on return of income filed in response to notice u/sec. 148 of the Act. Hence, we are not inclined to interfere with the order of Commissioner of Income Tax (Appeals) - Decided against assessee.
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