Non-Chargeability of Interest U/s. 234C leviable on Cash was Seized after the Expiry of Previous Year

Nitin Kumar Vs ACIT (ITAT Kolkata)

With regard to interest u/s 234C of the Act , it is levied for deferment of payment of advance tax for the period of 01.04.2010 to 31.03.2011. In the instant case, since, the cash was seized after the expiry of the previous year i.e. after 31.03.2011, the assessee cannot claim non-chargeability of interest u/s 234C on that account. Hence, interest u/s 234C of the Act is leviable in this case.

FULL TEXT OF THE ITAT JUDGMENT

1. This appeal by the assessee arises out of the order of the Learned Commissioner of Income Tax(Appeals)-7, Kolkata [in short the ld CIT(A)] in Appeal No.572/CIT(A)-7/Cir-25/14-15 dated 10.05.2016 against the order passed by the ACIT, Circle-52, Kolkata [ in short the ld AO] under section 143(3) read with Section 153A of the Income Tax Act, 1961 (in short “the Act”) dated 27.03.2014 for the Assessment Year 2011-12.

2. The only issue involved is whether the seized cash of Rs. 66,80,000/- on 23.04.2011 is eligible to be given credit before charging interest u/s 234A and 234B of the Act, in the facts and circumstances of the case.

Please become a Premium member. If you are already a Premium member, login here to access the full content.