2011 (6) TMI 754

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....g of interest u/s. 234B and 234C. 3. The ld. CIT(A) erred in allowing the credit of TDS at Rs. 56,90,053/- in the name of the company or in the name of the Directors as per Rule 37BA of I.T. Rules. 3. Facts of the case in brief are that there was a search and seizure operation u/s. 132 of the I.T. Act, 1961 in the group cases of M/s. Bhooratnam & Company on 30.08.2007 and some incriminating documents were found and seized during the course of search. The case was notified with the ACIT, Central Circle-5, Hyderabad. 4. During the course of assessment proceedings the learned counsel for the assessee argued that the Assessing Officer was not justified in levying interest u/s. 234B and u/s. 234C of the I.T. Act, 1961 as the assessee ha....

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....dvance tax under section 209(1)(d) in terms of which income tax calculated under clause (a) or clause (b) or clause (c) of subsection (1) shall be reduced by the amount of income-tax deductible. Even in terms of Explanation-1 to subsection (1) of section 234B " assessed tax" means the tax on the total income determined under regular assessment as reduced by the tax deducted. Only when the balance of such computation falls short of 90% of the assessed tax, interest is leviable either under subsection (1) or under subsection (3) of section 234B. In the case of the assessee there is no shortfall with reference to assessed tax after reducing the tax deducted at source from the tax determined, the computation of levying interest falls and no int....

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....ions of the learned AR and after perusing the order of the Assessing Officer held as under: "Having verified the facts and circumstances of the case, I am of the view that as per rule 37BA of I.T. Rules, 1962, the Assessing Officer is required to give credit for the TDS certificates filed by the appellant company whether they are in the name of the company or in the name of the directors. If the credit is given which is amounting to Rs. 56,90,053 there would not be any tax liability and therefore, the charging of interest u/s. 234B and 234C will not arise. Therefore, the Assessing Officer is directed to give credit to the TDS certificates filed by the appellant company and accordingly re-compute the appellant's tax liability or refund." ....