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Interest u/s.234A

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This query is : Resolved

BHAVIKA GANDHI (Querist)
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02 February 2010 Assessee copmany filed its return of income for AY 2007-08 within the due date of filing the return i.e October 2007. Said return was volunatarily revised by the assessee in March 2009 ( within the time limit of revising return)due to apparant mistake in the return. No interest u/s.234A was payable as per original computation of income due to loss.While filing revied return of income, positive income was arrived at.Whether interest u/s.234A was payable by the assessee.Revised return was filed without 234A interest. Intimation is received from dept wherein AO has charged huge amount of interest u/s.234A. Plese advice whether we can apply for rectification u/s.154 saying that no such interest u/s.234A is chargeable ?
can it be argued that as original return was in time and revised return filed within time limit substitutes original return, ni interest u/s.234A is chargeble?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 February 2010 Interest under section 234A has to be levied only on those returns filed under section 139(1),139(4) and 142(1)and as such interest cannot be levied on return filed under section 139(5).Therefore, u may move a rectification petition under section 154(2)(b) of the Income tax Act,1961.

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