Assessee liable to pay secs. 234B and 234C interest if Advance tax Not Paid

Assessee liable to pay secs. 234B and 234C interest if he didn’t discharge advance tax liability on specified dates

[2015] 57 taxmann.com 34 (Mumbai - Trib.)

IN THE ITAT MUMBAI BENCH 'D'

Rajshri Production (P.) Ltd.

v.

Additional Commissioner of Income-tax -11(1), Mumbai

Section 234B, read with sections 234C and 154, of the Income-tax Act, 1961 - Interest - Chargeable as (Rectification) - Assessment year 2008-09 - Appellate order was passed holding that sum total of tax deducted at source from assessee and MAT credit was more than 90 per cent of assessed tax and, hence, interest under sections 234B and 234C was not chargeable - Later on, Assessing Officer noticed that tax payable was Rs.1.94 crore and advance tax paid was Rs.1.78 crore and, thus, there was shortfall of Rs. 15.60 lakh - On his rectification application, Commissioner (Appeals) held that, since advance tax payable was more than Rs.10,000, same would attract interest - Whether since as provided in sections 207 and 208, assessee's liability to pay advance-tax within time prescribed under section 211 existed on last date for payment of advance tax or at least on last date of financial year and it was not case that such liability arose subsequently after passage of last date for payment of advance tax or after last date of financial year, assessee was liable to pay advance tax for year under consideration - Held, yes - Whether on failure to pay advance tax on stipulated dates, interest was to be recalculated after giving assessee credit of taxes paid - Held, yes [Para 5] [In favour of revenue]