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2017 (3) TMI 1031 - AT - Income TaxInterest charged u/s 234B and 234C - returned income or assessed income - additional income was surrendered during survey to buy peace and avoid further adverse consequences - Held that:- There is no iota of evidence brought by the Revenue that this income has actually arisen in assessment year 2006-07. Even the provisions of section 209(1) of the Act talks of the payment of advance tax in the financial year. In our view, in view of the peculiar facts of this case, in the financial year neither the assessee can foresee accrual of the income which has arisen as on 5.3.2008 nor the Assessing Officer could have required the assessee to pay advance tax in pursuance of an order made under section 210 of the Act. In view of this fact, we are of the view that due to the clear mandate of section 234B (1) of the Act, since the assessee was not liable to pay advance tax under section 208 or 210 of the Act, therefore, that the assessee was not liable to pay advance tax in respect of income of ₹ 90 lakhs which he declared on 5.3.2008. Since the assessee was not liable to pay advance tax, no question of deferment of advance tax under section 234C of the Act arises. In view of this fact, we are of the view that it is a case where interest cannot be levied under section 234B and 234C of the Act on the assessee. We accordingly set aside the order of the ld. CIT(A) and delete the interest. - Decided in favour of assessee.
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