Demand of interst u/s 234b and 234c in case of relief u/s 89

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HKB Associates (Querist)

16 March 2018 Dear Expert,
Receive intimation u/s 143(1) for AY 17-18 where demand of interst 234B and 234C Rs 3105 and Rs 4669 is impose.
i have Tax Payable on total income is Rs 99972 and Relief u/s is Rs 63664, therefore Total Tax Liablity after relief is Rs 36308,
I paid 36308+1467(interst u/s234C) that is total tax in Advance only on15/03/2017.
Since only installment of Advance tax is paid on 15/03/2017 therefore interst on RS 36308 ,us 234c of Rs 1467 is correct.
Return is filedbefore due date that is on 28/07/2017, 10E also filed before return. Relief u/s 89 of Rs 63664 also consider by department in intimation u/s 143(1).
My query is why department is demanding 234B and 234C interest total Rs 7774 , which is 21.4% on tax liability of Rs36308, where all taxes in advance paid on 15/03/2017.
I think they impose a interst before providing relief u/s 89, is it is correct? is there any such rule?

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

17 March 2018 Given that the relief u/s 89 has been claimed and accepted by IT and the advance tax has also been paid, demand for interest is not valid. Lodge a grievance in IT Helpdesk

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