Advance tax

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Amit (Querist)
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16 August 2010 Please suggest me on my following problem
1.Mr. X is a consultant
2. in fy 0809 his income from cosultancy is as follow
1. from april 08 to feb09-rs. 21,00,000.00
2. on 29 march of 2009-. 75,00,000.

3. he paid advance tax in first two relevant quarter on time and self assessment tax at the time of filing the return under section 139(1).
4. He received the notice from the department asking to pay interest under section 234C[i.e.deferment of advance tax]
5. While re -computing the interest we find that this is mainly because of income earned in the last quarter and that too in the month of March09

now my question is that-
1. how can the income tax authority expect from an assessee to pay advance tax in early quarter when he earn that in last month of the previous year?

2. is there any option with us on the basis of which we can request department to drop the demand?

please suggest i need to go tomorrow to attend this case.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 August 2010 Income is received on 29th. But last date to discharge advance tax liability is 15 th. So assessee is prevented by sufficient cause to pay the advance tax. This plea can be taken before the AO but A.O's view will sustain in assessment for want of clarity in the section. However, petition can be moved before Chief Commissioner of Income tax, after assessment, seeking waiver of interest on the strength of Board's order dated 23 rd May 1996 reported in 225 ITR (St)101.

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