TMI Blog2017 (9) TMI 1353X X X X Extracts X X X X X X X X Extracts X X X X ..... und was released to the petitioner-assessee on 03-10-2013, that amount of ₹ 102,59,36,115/- became assessable to tax under Section 115JB of the Income Tax Act, 1961. After the said order passed by the Hon'ble Supreme Court on 15-07-2013 followed by order dated 05-08-2013, the assessee-Company could not have contended that it could not anticipate the accrual of income under Section 115JB of the Act and therefore, it ought to have paid advance tax installments taking into account such accrued income for the quarter ending 15-09-2013. Having not paid that amount, the interest liability under Section 234C of the Act automatically stood attracted. Chief Commissioner has already granted 100% waiver for non-payment of advance tax on this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evied at ₹ 20,12,466/-. A waiver application was filed by the petitioner-assessee before the Chief Commissioner. 3. The facts leading to the said partial waiver as narrated in the impugned order are quoted below for ready reference: 2. The assessee filed return of income for A.Y. 2014-15 on 22-11-2014 declaring total income of ₹ 56,01,36,000/-. 2.1 The e-filed return of income was processed by CPC on 21-04-2015, accepting the income returned, while charging interest u/s 234C of ₹ 20,21,466/-, raising a demand of ₹ 98,178/- as against the refund of ₹ 19,23,290/- claimed by the assessee. 2.2 On receipt of the intimation u/s 143(1) from CPC, the assessee filed a petition u/s 119(2)(a) seeking wai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the report of the Assessing Officer, DCIT, Circle-2(1)(1), Bengaluru, on the facts of the case was obtained along with the comments of Pr.CIT, Bengaluru-2, Bengaluru. 3.1 The Assessing Officer, in her report has stated that the Hon'ble Supreme Court vide its order dated 15-07-2013 had dismissed appeal filed by M/s.HSBC which owed money to the assessee and directed the registry of the court to release the money to the assessee. This resulted in profit of ₹ 56,01,36,301/- for the F Y 2013-14 and the company became liable to pay tax u/s.115JB. The amount was received on 03-10-2013 which is subsequent to the due date for payment of installments for 1st and 2nd quarter and also the company has paid 75% of its tax liability by 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al against the order of Hon. High Court of Bombay directing M/s. HSBC to pay ₹ 55,45,78,122/- to the assessee company. On admitting the appeal filed by M/s. HSBC the Hon'ble Supreme Court had directed M/s. HSBC to deposit the decrial amount of ₹ 55,45,78,122/- in Registry of the Hon'ble Supreme Court of India. 5.1 On 15-07-2013 the Hon'ble Supreme Court dismissed the appeal filed by M/s.HSBC directing the registry on 05-08-2013 to release the money to the assessee company. The Decree amount was kept in fixed deposit by the Registry with Canara Bank, Overseas Branch, New Delhi. On 17-09-2013 the Registry directed AGM, Canara Bank to foreclose the Fixed deposit and release the money, with interest and after deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -06-2013 ₹ 5,05,359 Interest u/s.234C for the Q.E 15-09-2013 ₹ 15,16,107 Total Interest charged u/s 234C as per intimation u/s. 143(1) ₹ 20,21,466 6. In view of the above, I find that the present case is fit for waiver of interest charged u/s 234C for first quarter of the F Y 2013-14 which amounts to ₹ 5,05,359/-. Hence, the Interest u/s. 234C for the A Y 2013-14 as charged in the intimation u/s 143(1) is reduced from ₹ 20,21,466/- to ₹ 15,16,107/-. 4. Learned counsel for the petitioner submitted that since the review petition filed by the HSBC Bank was pending before the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er-assessee on 03-10-2013, that amount of ₹ 102,59,36,115/- became assessable to tax under Section 115JB of the Income Tax Act, 1961. After the said order passed by the Hon'ble Supreme Court on 15-07-2013 followed by order dated 05-08-2013, the assessee-Company could not have contended that it could not anticipate the accrual of income under Section 115JB of the Act and therefore, it ought to have paid advance tax installments taking into account such accrued income for the quarter ending 15-09-2013. Having not paid that amount, the interest liability under Section 234C of the Act automatically stood attracted. 7. Learned Chief Commissioner has already granted 100% waiver for non-payment of advance tax on this amount for the qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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