https://www.taxtmi.com/caselaws?id=32460 Interest under sections 234A and 234B of the Income-tax Act is linked to distinct statutory defaults: delayed filing of the return and failure or shortfall in payment of advance tax. Tax paid after the close of the financial year, but before filing the return, does not retrospectively become advance tax and cannot be used to reduce interest under either provision. The scheme under section 140A also requires self-assessment payment to be adjusted first against interest and only then against tax, so the general appropriation rules in the Indian Contract Act do not apply. The commentary also records that the constitutional challenge to sections 234A and 234B on grounds of arbitrariness or double charging was rejected. en-us Tue, 23 Sep 2008 00:00:00 +0530 Wed, 25 Feb 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=32460 Interest under sections 234A and 234B of the Income-tax Act is linked to distinct statutory defaults: delayed filing of the return and failure or shortfall in payment of advance tax. Tax paid after the close of the financial year, but before filing the return, does not retrospectively become advance tax and cannot be used to reduce interest under either provision. The scheme under section 140A also requires self-assessment payment to be adjusted first against interest and only then against tax, so the general appropriation rules in the Indian Contract Act do not apply. The commentary also records that the constitutional challenge to sections 234A and 234B on grounds of arbitrariness or double charging was rejected. Case-Laws Income Tax Tue, 23 Sep 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=32460