TaxTMI 
TaxTMI 
2025 (2) TMI 1935
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....: Interest under section 234C is not applicable 1.1 The learned CIT(A) erred in not taking cognizance of the law that interest under section 234C of the Act was leviable only if there was a shortfall in payment of advance tax. 1.2 The learned CIT(A) erred in not taking cognizance of the law that Interest under section 234C of the Act is computed on the returned income. 1.3 The learned CIT(A) erred in not taking cognizance of the fact that there was no shortfall in payment of advance tax instalments computed on the basis of returned income. 1.4 The learned CIT(A) erred in not taking cognizance of the fact that the Appellant had deposited excess advance tax in each quarter. 2 Re.: Proviso to section 234C is applicable Without prejudice to the above 2.1 The learned CIT(A) erred in denying the relief available under proviso to section 234C of the Act for computing advance tax instalments on capital gains. 2.2 The learned CIT(A) erred in holding that the Appellant has correctly estimated the quarter wise short-term capital gains and long-term capital gains, and thereby the proviso to section 234C of the Act is not a....
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....India (SEBI). It is liable to tax under the provisions of section 115AD of the Act. Return of income was filed on 19.09.2015 reporting total income at Rs. 192,16,85,280/-. Order u/s.143(3) was passed on 07.12.2017 accepting the returned income. In the computation of total income, forming part of the assessment order, ld. Assessing Officer computed tax liability with gross demand of Rs. 25,29,33,224/- which includes interest u/s. 234C of Rs. 61,53,242/-. After giving credit for advance tax of Rs. 24,82,33,608/-, total tax and interest payable was determined at Rs. 46,99,616/-. 3.1. Statement of total income prepared by the assessee computing its total income at Rs. 192,16,85,285/- for which the return was filed is extracted below. In this statement of total income, assessee claims a refund of Rs. 14,53,627/- against total tax payable of Rs. 24,67,79,981/- 3.2. Against this statement of total income by the assessee, ld. Assessing Officer computed the total income while completing the assessment to arrive at the assessed total income at the same figure which is also extracted below: 3.3. From the perusal of both the computations of total income, i.e., by the assessee as well ....
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.... with the assessee from the beginning of the year itself. According to the assessee, there was no taxable capital gain during the first quarter. Further, after adjustment of brought forward short term capital loss and the current years short term capital loss, assessee arrived at its taxable income and computed tax liability thereon. This tax liability was deposited by it by way of advance tax in the respective quarters. According to the assessee, it paid advance tax more than the tax liability due on it on the returned income and thus claimed a refund. 5.1. In the written submission filed before us, assessee furnished three exhibits with three different scenarios. Based on the above discussion, we refer to the working given in exhibit -2 whereby short term capital loss for the current year has been identified quarter wise and has been accordingly set off in the respective quarters. Furthermore, interest income earned by the assessee on investments made in the Government of India securities which is subjected to TDS u/s.194LD, the advance tax due thereon has been taken at Nil. Thus, interest u/s.234C for the first quarter was worked out to Rs. 3,57,630/-. This working is extract....
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....ssions made by the ld. Sr. DR, it is contended that provisions of section 234C are mandatory and automatic and compensatory in nature. We note that contentions so made, are not under challenge in the present appeal. The dispute is only in respect of manner of computing the interest chargeable u/s.234C vis-a-vis identification of capital gain including the loss for each quarter and arriving at tax liability thereon. Contention is also made by ld. Sr. DR in respect of verification of brought forward losses which again is not a matter of dispute since ld. Assessing Officer has assessed the total income the returned income, computation of which is similar to what was presented by the assessee in its return. Both the computations by assessee and ld. Assessing Officer are already extracted above for ready reference. 6.1. In respect of interest income earned by the assessee from investments in Government of India securities which is subject to concessional tax rate u/s.194LD, it is contended by the Revenue that in absence of sufficient evidence supporting eligibility for concessional tax rate, claim of assessee need to be disallowed for computing the interest u/s. 234C. In this respect....
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....t u/s.194LD of the Act. Since the quarter wise working for short term capital loss has been furnished for the first time before us in the form of exhibit 2, we find it proper to remit this matter to the file of Jurisdictional Assessing Officer (JAO) for the limited purpose of verification of the same for its identification quarter wise. Ld. JAO is directed to consider the computation made in exhibit 2 as extracted above for the purpose of levy of interest u/s.234C. Accordingly, grounds raised by the assessee are allowed for statistical purposes. 8. In the result, appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 10 February 2025. ============= Document 1 NEW WORLD FUND, INC. PREVIOUS YEAR ENDED 31-Mar-15 ASSESSMENT YEAR 2015-2016 STATEMENT OF TOTAL INCOME (Read with the notes hereunder) AMOUNT (Rupees) AMOUNT (Rupees) INCOME FROM CAPITALGAINS Long term capital gain (Annexure 1) 15.17,90,85.766 Long term capital loss (Annexure 1) (1,24,25,26,897) Net Long Term Capital Gain/ Loss 13,93,65,58,869 Less: Exempt under section 10(38) of the Act 13.00.23.09.452 93.42,49.417 Short term capital gain ....