INCOME TAX ACT, 1961

Section 234C

Interest under section 234C - Computation - -

Assessee sold shares worth Rs. 200 crores being 10,000 equity shares of Gul Properties Private Limited. Out of the sale, consideration, assessee received Rs. 127 crores in financial year 2007-08. AO observed that assessee has considered the date of sale to be 30-3-2012. CIT(A) viewed that assessee having received more than 51% of consideration in previous years assessee ought to have paid advance tax during the year under consideration and, therefore, interest under section 234C was leviable. Held: According to proviso to section 234C(1)(a), nothing contained in the provisions of section 234C shall apply to any shortfall in the payment of tax due on the returned income, whereas such shortfall is on account of under estimate or failure to estimate the amount of capital gain. Accordingly, AO was directed to compute interest under section 234C in accordance with the above decisions.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2012-13

INCOME TAX ACT, 1961

Section 234B

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