Interest u/s 234c

This query is : Resolved

Guest

Guest (Querist)

21 September 2010 The company paid Advance tax till 15th june on the income received. However, during 2 nd qtr, company opened new unit and the huge income recvd from the second unit is taken care of in 2nd qtr. advance tax is also paid in 2nd qtr. but, at the time of filing of return, 15% of total income tax should be paid in 1st qtr which is not paid actually cause the unit was not opened till then.

Now, the company gets liability of int. u/s 234c for the same. can co. take any opposition that the unit was not opened till then and therefore, interest is not payable?

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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21 September 2010 I don't think any remedy is available in this case.

Other view are also welcome.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 September 2010 Interest is mandatory. However you can seek waiver before the chief Commissioner of Income tax as per clause 3 of CBDT Order F.No.400/234/95-IT(B) dated 23/5/1996 reported in 225 ITR (St) 101.

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