Applicability of interest u/s 234b

This query is : Resolved

Mohan Saxena (Querist)
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23 August 2012 Our Company is having a C/F Losses of Rs.14,68,360.00 as on 31/03/2010.

Tax Payable (Incl. Cess) under MAT for the F.Y.2009-10 was Rs.678459.00 which has been adjusted against available TDS Credit of Rs.26,61,687.00

The Assessing Officer has disallowed Administrative Expenses amounted to Rs.2,50,000.00

As a result of Order passed on 16/08/2012 u/s 143(3)Interest u/s 234B of Rs.1,09,640.00 has been charged by the A.O.and a demand has been raised.

Please advise, is Interest u/s 234B is applicable when we have not made the payment of advance tax because we were having sufficient TDS Credit.