9911796707
TMI Blog2013 (1) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the levy of interest u/s 234C of the Income-tax Act by the AO in respect of assessee's income that has accrued to the assessee on 24.3.2008 only. The levy of interest u/s 234C was confirmed by the CIT(A). 3. The brief facts of the case are that the assessee which is in the business of real estate development had filed its return of income for the assessment year 2008-09. There was a search action u/s 132 of the Income-tax Act on 28.2.2008 in the case of M/s Ittina Group to which the assessee group belongs. Thereafter, the assessee filed its return of income on 30.9.2008 declaring an income of Rs.19,77,66,240/- which was accepted by the Assessing Officer and the Assessing Officer charged interest u/s 234C of Rs.24,87,169/- on the retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inancial year. 8. The learned DR however supported the orders of the CIT(A). 9. Having heard both the parties and having considered their rival contentions, we find that the only issue before us is whether the interest u/s 234C of the Income-tax Act can be levied where the entire business income earned and offered by the assessee is at the fag end of the financial year. It is the contention of the assessee that the assessee has earned the business income only on 24.3.2008 as stated by it in its return of income and the Revenue has not examined the said statement. The advance tax is to be paid by the assessee u/s 206 of the Income-tax Act. However, it denotes that the assessee should have earned such income on which an advance tax is to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it was just impossible for the assessee to anticipate such a spurt in the sales and consequently the resultant income when the assessee had not yet started earning income, the law could not expect it to estimate the advance liability and pay tax. No interest could, therefore, be levied on the facts and circumstances of the instant case. The order of the CIT(A) deleting the interest levied was, therefore, upheld, dismissing the appeal of the revenue." 10. Similarly, in the case before us, the assessee has claimed to have earned the business income only at the fag end of the financial year by the delivery of possession of the property and that this delivery of possession is as per the agreement between the assessee and the developer. In ou ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
