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TMI Blog2017 (3) TMI 1031X X X X Extracts X X X X X X X X Extracts X X X X ..... x in pursuance of an order made under section 210 of the Act. In view of this fact, we are of the view that due to the clear mandate of section 234B (1) of the Act, since the assessee was not liable to pay advance tax under section 208 or 210 of the Act, therefore, that the assessee was not liable to pay advance tax in respect of income of ₹ 90 lakhs which he declared on 5.3.2008. Since the assessee was not liable to pay advance tax, no question of deferment of advance tax under section 234C of the Act arises. In view of this fact, we are of the view that it is a case where interest cannot be levied under section 234B and 234C of the Act on the assessee. We accordingly set aside the order of the ld. CIT(A) and delete the interest. - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent determining the total income at ₹ 95,84,870/-. The Assessing Officer levied interest under section 234B and 234C of the Act amounting to ₹ 9,58,591/- from 1.4.2006 to the date of assessment. The assessee went in appeal before the ld. CIT(A). The ld. CIT(A) dismissed the appeal of the assessee. 6. We have heard the rival submissions and carefully considered the same along with the orders of the authorities below. The only question before us, as argued by the ld. A.R. of the assessee as well as by the ld. D.R., is that whether the interest has to be levied from the date of survey to the completion of the assessment or from 1.4.2006 to the date of assessment. The ld. A.R. of the assessee in this regard vehemently relied on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed by the assessee. The assessee offered a sum of ₹ 10 lakhs to buy peace with the Department to avoid further scrutiny. The Assessing Officer simply accepted the offer of the assessee of ₹ 10 lakhs as additional income and levied interest under section 234A and 234B of the Act. The assessee went in appeal against the levy of interest, which was dismissed by the ld. CIT(A). The Tribunal also upheld the orders of the lower authorities but when the matter went before the Hon'ble High Court, the High Court, on the peculiar facts of the case, deleted the interest levied under section 234A and 234B of the Act. The levy of interest, in our opinion, is mandatory in view of the decision of the Hon'ble Supreme Court in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ninety per cent of the assessed tax. Section 208 of the Act castes duty on an assessee to pay advance tax during the financial year in every case where the amount of such tax payable by the assessee during that year has been computed in accordance with the provisions of Chapter XVII-C is ₹ 10,000/- or more. Section 210 of the Act requires the assessee to pay advance tax at his own or in pursuance of the order of the Assessing Officer on or before each of the due dates specified under section 211 of the Act. In the instant case, the assessment year involved is 2006-07. Survey operation under section 133A of the Act was conducted at the business premises of the assessee on 5.3.2008 i.e. after close of the financial year relevant to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay advance tax under section 208 or 210 of the Act, therefore, that the assessee was not liable to pay advance tax in respect of income of ₹ 90 lakhs which he declared on 5.3.2008. Since the assessee was not liable to pay advance tax, no question of deferment of advance tax under section 234C of the Act arises. In view of this fact, we are of the view that it is a case where interest cannot be levied under section 234B and 234C of the Act on the assessee. We accordingly set aside the order of the ld. CIT(A) and delete the interest. 9. In the result, appeal filed by the assessee is allowed. Order pronounced in accordance with Rule 34(4) by putting on notice board on this day, the 15th February 2016. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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