TaxTMI 
TaxTMI 
2017 (9) TMI 1353
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.... of the said Act on account of non-payment of installment of advance tax for the quarter end of 15-09-2013 and while waiving of said interest under Section 234C of the Act for quarter end of 15-06-2013 amounting to Rs. 5,05,359/-, out of the total interest imposed by the assessing authority under Section 234C of the Act as per the intimation under Section 143(1) of the Act was levied at Rs. 20,12,466/-. A waiver application was filed by the petitioner-assessee before the Chief Commissioner. 3. The facts leading to the said partial waiver as narrated in the impugned order are quoted below for ready reference: "2. The assessee filed return of income for A.Y. 2014-15 on 22-11-2014 declaring total income of Rs. 56,01,36,000/-. 2.1 The ....
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....) received from CPC the interest u/s 234C is charged for shortfall in payment of advance tax for 1st and 2nd quarter of the F Y 2013-14 which is requested to be waived as the company is in receipt of money only during 3rd quarter of F Y 2013-14. 3. The petition filed by the assessee has been considered and accordingly, the report of the Assessing Officer, DCIT, Circle-2(1)(1), Bengaluru, on the facts of the case was obtained along with the comments of Pr.CIT, Bengaluru-2, Bengaluru. 3.1 The Assessing Officer, in her report has stated that the Hon'ble Supreme Court vide its order dated 15-07-2013 had dismissed appeal filed by M/s.HSBC which owed money to the assessee and directed the registry of the court to release the money to th....
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....e that this is a fit case for reduction or waiver of the interest chargeable under Section234C of the Income Tax Act." 5. In the instant case, during the course of hearing and the submissions made by the assessee, it is observed that M/s.Hong Kong & Shanghai Bank Corporation Ltd. (HSBC) had filed an appeal against the order of Hon. High Court of Bombay directing M/s. HSBC to pay Rs. 55,45,78,122/- to the assessee company. On admitting the appeal filed by M/s. HSBC the Hon'ble Supreme Court had directed M/s. HSBC to deposit the decrial amount of Rs. 55,45,78,122/- in Registry of the Hon'ble Supreme Court of India. 5.1 On 15-07-2013 the Hon'ble Supreme Court dismissed the appeal filed by M/s.HSBC directing the registry on 05....
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....7,369 Less: TDS Rs. 36,98,594 Tax liability net of TDS Rs.11,37,08,712 Interest u/s.234C for the Q.E 15-06-2013 Rs. 5,05,359 Interest u/s.234C for the Q.E 15-09-2013 Rs. 15,16,107 Total Interest charged u/s 234C as per intimation u/s. 143(1) Rs. 20,21,466 6. In view of the above, I find that the present case is fit for waiver of interest charged u/s 234C for first quarter of the F Y 2013-14 which amounts to Rs. 5,05,359/-. Hence, the Interest u/s. 234C for the A Y 2013-14 as charged in the intimation u/s 143(1) is reduced from Rs. 20,21,466/- to Rs. 15,16,107/-." 4. Learned counsel for the petitioner submitted that since the review petition filed by the HSBC Bank was pending before the Hon'b....
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....03-10-2013, that amount of Rs. 102,59,36,115/- became assessable to tax under Section 115JB of the Income Tax Act, 1961. After the said order passed by the Hon'ble Supreme Court on 15-07-2013 followed by order dated 05-08-2013, the assessee-Company could not have contended that it could not anticipate the accrual of income under Section 115JB of the Act and therefore, it ought to have paid advance tax installments taking into account such accrued income for the quarter ending 15-09-2013. Having not paid that amount, the interest liability under Section 234C of the Act automatically stood attracted. 7. Learned Chief Commissioner has already granted 100% waiver for non-payment of advance tax on this amount for the quarter end of 15-06-....