Interest U./s 234C will not be applicable while the 234B will be applicable.
For Applicability of Sec 234B this is not necessary that interest under sec 234C must have been paid.
Analysing the provision of 234B which is-
. "Subject to the other provisions of this section, where, in any financial year, an assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of Section 210 is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period from the 1st day of April next following such financial year to the date of determination of total income under sub-section (1) of Sec 143 and where a regular assessment is made, to the date of such regular assessment, on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax."
Analysis of Sec 234B:
1. The assessee is liable to pay advance tax u/s 208 as the tax assessee is more than Rs. 10000/- and;
2. Advance tax paid under the provision of sec 210 is less than 90% of Assessed Tax (irrespective of the fact 234C is applicable or not)
For applicability of provision of Sec 234B, only condition has to be satisfied that tax under sec 208 is liable to be paid. in other words tax assessed should be rs. 10000 or more and tax paid should be less than 90%.
In query both condition satisfies and hence sec 234B will be applicable.
Based on provisions:
Sec 208: Advance tax shall be payable during a financial year in every case where the amount of such tax payable by the assessee during that year, as computed in accordance with the provisions of this Chapter, is ten thousand rupees or more.
Sec 210: . Every person who is liable to pay advance tax under section 208 (whether or not he has been previously assessed by way of regular assessment) shall, of his own accord, pay, on or before each of the due dates specified in section 211, the appropriate percentage, specified in that section, of the advance tax on his current income, calculated in the manner laid down in section 209
Sec 211: Only dates are specified.
CAclubindia
