TMI Blog2016 (7) TMI 1600X X X X Extracts X X X X X X X X Extracts X X X X ..... of advance tax payable, an assessee is liable to estimate his income. Facts of the present case clearly show that the gift of ₹ 10.00 crores, which has been received by the assessee on 17/12/2011 could not have been foreseen by the assessee so as to enable him to estimate such income for the purpose of payment of advance tax on an anterior date, may it be 15/09/2011 or 15/12/2011. In such a situation, the decision of the Hyderabad Bench of the Tribunal in the case of ACIT v. Jindal Irrigation Systems Ltd. [ 1995 (8) TMI 97 - ITAT HYDERABAD-A ] relied upon by the appellant, clearly militates against charging of interest under section 234C of the Act. Therefore, in this background, the levy of interest under section 234C of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintained with the bank and capital gains. The return of income for the assessment year 2012-13 was filed on 20/07/2012, declaring a total income of ₹ 13,91,54,702/-. The said return was subject to processing under section 143(1) of the Act dated 23/11/2012. The only point of dispute by the assessee is that while processing such return under section 143(1) of the Act, interest under section 234C of the Act was levied on account of shortfall in payment of advance tax on first and second installments, due on 15/09/2011 and 15/12/2011, in respect of gift of ₹ 10.00 crores claimed to have been received on 17/12/2011. On such deferment in payment of instalments, interest of ₹ 7,66,070/- was charged under section 234C of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iability to pay advance tax enshrined under the Act is based on the principle of pay as you earn , as has been aptly noted by the Delhi High Court in the case of Bill and Peggy Marketing India Pvt. Ltd.(supra). Section 234C of the Act prescribes that the advance tax is payable in installments on the dates falling within financial year itself. Any failure or shortfall in payment of such installments attracts interest under section 234C of the Act. In the present case, the assessee has been charged interest under section 234C of the Act primarily on the ground that the requisite installments were not paid on the specified dates of 15/9/2011 and 15/12/2011. The assessee resists the levy on the ground that the income which has prompted the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal in the case of ACIT v. Jindal Irrigation Systems Ltd. (56 ITD 164)(Hyd.), relied upon by the appellant, clearly militates against charging of interest under section 234C of the Act. As per the Hyderabad Bench of the Tribunal, an assessee could not be defaulted for a duty, which was impossible to be performed. The Hyderabad Bench of the Tribunal was also considering levy of interest under section 234C of the Act in a situation where on the relevant dates assessee was not in a position to estimate receipt of such income. To the similar effect is the decision of the Chennai Bench of the Tribunal in the case of Express Newspaper Ltd (103 TTJ 122)(Chennai). Therefore, in this background, the levy of interest under section 234C of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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