Interest u/s 234b wrongly charged by ao

This query is : Resolved

Mohan Saxena (Querist)
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23 August 2012 Our Company is having a C/F Losses of Rs.14,68,360.00 as on 31/03/2010.

Tax Payable (Incl. Cess) under MAT for the F.Y.2009-10 was Rs.678459.00 which has been adjusted against available TDS Credit of Rs.26,61,687.00

The Assessing Officer has disallowed Administrative Expenses amounted to Rs.2,50,000.00

As a result of Order passed on 16/08/2012 u/s 143(3)Interest u/s 234B of Rs.1,09,640.00 has been charged by the A.O.and a demand has been raised.

Since, Interest u/s 234b & C is not applicable but charged in Computation of Income by AO.

Please guide me the procedure to get it corrected in Assessment Order from department.

CA VISHNU GAVKARE

CA VISHNU GAVKARE (Expert)
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24 August 2012 Dear Mohan,
234 B is on assessed Income hence stand taken by AO is correct. 234c is on returned hence not applicable in your case.

Mohan Saxena

Mohan Saxena (Querist)
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24 August 2012 Is Interest u/s 234B still applicable if Tax Liability calculated under MAT and assessee is having TDS credit for same financial year which 5 times more the actual tax liability.

Please reply.