TMI Blog2010 (12) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... me, the AO himself did not charge interest under ss. 234B and 234C of the Act - Further, it has been time and again held that where the assessee is under a bona fide belief and based his estimate of income as per the law prevailing at the relevant time, no interest u/s 234B and 234C of the Act is leviable - Decided in favour of assessee - ITA No. 3223/Del/2010; - - - Dated:- 16-12-2010 - A.D. Jain, R.C. Sharma, JJ. Anusha Khurana for the Appellant Rakesh Gupta and Ashwani Taneja for the Respondent ORDER A.D. Jain, Judicial Member:- 1. This is Department's appeal for the asst. yr. 2006-07, contending that the learned CIT(A) has erred in holding that mandatory interest under ss. 234B and 234C of the IT Act is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad also not charged any interest under ss. 234B and 234C of the Act; that the amendment by insertion of s. 115JB(2), Expln. 1(h) was brought in post-filing of the return of income and computation of book profit for the purpose of s. 115JB of the Act; and that also, the earlier CIT(A), in the assessee's own case, vide order dt. 14th Dec., 2007, had given relief to the assessee on account of add back to the P and L a/c as deferred tax, while calculating book profit under s. 115JB of the Act. 4. Before us, the learned Departmental Representative has argued that the learned CIT(A) has erred in observing that interest under ss. 234B and 234C of the Act was not chargeable; that the learned CIT(A) has failed to consider that interest under ss. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment proceedings, in view of this amendment, the assessee itself voluntarily revised its statement of assessable income. Therein, the deferred tax debit of Rs. 8,49,02,837 was added to the assessee's income while working the book profit as per s. 115JB of the Act. 7. The question is as to whether interest under ss. 234B and 234C of the Act can be charged for default in payment of advance tax and for deferment of advance tax, respectively, where the payment of tax became due only because of the amendment by way of insertion of Expln. 1(h) to s. 115JB(2) of the Act, the amendment having been made operative retrospectively. It was due to the filing of the revised statement of assessable income, that the book profit was increased by the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of India (1996) 134 CTR (P and H) 581 : (1996) 222 ITR 375 (P and H); 4. A.M. Sainalabdeen Musaliar vs. Union of India and Ors. (1999) 155 CTR (Ker) 647 : (2000) 242 ITR 400 (Ker); 5. CBDT Order No. F. 400/234/95-IT(B) dt. 21st May, 1996 and amended on 30th Jan., 1997; 6. CIT vs. Anand Prakash (2009) 224 CTR (Del) 72 : (2009) 20 DTR (Del) 259 : (2009) 316 ITR 141 (Del); 7. Priyanka Overseas Ltd. vs. Dy. CIT (supra); and 8. CIT vs. Satish Traders (2001) 166 CTR (MP) 80 : (2001) 247 ITR 119 (MP). Obviously, no one can be forced to perform an impossibility. 8. In view of the above, the learned CIT(A) cannot at all be said to have erred in holding that interest under ss. 234B and 234C of the Act was wrongly charg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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