Interest under section 234B(3)

This query is : Resolved

Mayank Srivastava (Querist)
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16 March 2017 An assessee who has filed return for the AY 2013-14 and deposited more than 90% of tax as advance tax and accordingly interest under 234B was not charged at the time of filing of original return . Later on due to search this return is again assessed under section 153A and the original assessed tax is increase in the order under 153A , however the advance tax deposited is still more than 90% of assessed tax under 153A. whether assessee is liable to pay interest under section 234B(3) on the increased amount.

CA Chandan Sharma

CA Chandan Sharma (Expert)
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16 March 2017 90% already paid-Section 234B(3) of the Income Tax Act, 1961 not applicable

Mayank Srivastava

Mayank Srivastava (Querist)
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16 March 2017 Despite of the fact there is nothing mentioned in section 234B(3) regarding non applicability if more than 90% paid.

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CA Chandan Sharma

CA Chandan Sharma (Expert)
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16 March 2017 Please refer text from section 234B(3)”...the amount on which interest was payable in respect of shortfall in payment of advance tax for any financial year under sub-section (1) is increased, the asssessee shall be liable to pay.....”