Interest liability u/s 234c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2011 The survey u/s 133A has been conducted as on 01.02.2008 and there addition of 20 lakhs in the income of the assessee, he is liable to pay interest u/s 234c of defferment on Advance Tax or not? if yes, then from which date he shall be liable to pay the interest?

prasad

prasad (Expert)
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13 December 2011 Yes 234 C is applicable from the time allowed under the notice and order of assessment U/s 143 (3). Explanation 3 to Section 234A

Ratan Sharma

Ratan Sharma (Expert)
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13 December 2011 Good question? There is no such clear cut guidelines. However we can take a plea that as the assessee has declared the income as on 1/2/2008 therefore interest u/s. 234C should not be levied for 15/9 & 15/12. If you got any specific answer & case laws then do sent me on ratansharma123@rediffmail.com. Income is booked on 1/2/2008 only therefore interest u/s. 234C appliable for march only. Alternatively let us take by example if the assessee has not make any disclosure and the addition is made in the assessment then what? under such circumstances the 234C interest is calculated on the returned income only and no 234C is applicable for additional income. i.e. interest is calculated on the book income. Therefore as the income is booked on 1/2/2008 therefore no interest should be leviable for earlier quarters.

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