Interest U/S 234 B & 234C is not applicable for 44 AD income for Assessment Year 2015-16

[KASHYAP PRITHANI]

My client has filed his ROI for Assessment Year 2015-16 in the year 2022.

The A.O while passing the order has added interest U/S 234B, & 234C in his computation of income.

Interest u/s 234B & C has been included for 44AD income after the amendment of Advance Tax provisions by the Finance Act 2016 (No. 28 of 2016) which is effective from 01-06-2016 for Assessment Year 2017-18.

Is there any case law available in support of the above facts.

AI Summary

Advance tax exclusion for presumptive business: interest under advance-tax provisions not applicable for the earlier assessment year.
Prior to the Finance Act, 2016 amendment, Section 44AD(4) excluded eligible presumptive businesses from advance tax provisions, so interest under Sections 234B and 234C did not apply to such income for the assessment year in question; the 2016 amendment introduced a one-time advance tax obligation for presumptive income prospectively, and principles of non-retroactivity noted in cited authority support prospective application.