Interest u/s.234C

This query is : Resolved

CA Namrata Shetty (Querist)
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14 January 2009 Mr.A, shareholder in M/s. ABC pvt. Ltd. co. holding more than 90% of shares.At the time of scrutiny of M/s. ABC Pvt. Ltd.Co. the concept of deemed dividend came into picture.Mr.A accepted to it. Thereafter a notice u/s.148 was issued to the Mr.A. Against this Mr.A filed a revised return and paid tax on deemed dividend.This revised return was selected for scrutiny and order was passed accepting the income as stated in revised return. While filing the revised return Mr.A did not consider interest u/s.234C following the funda that 234C is levied on returned income and it cannot be altered in subsequent proceedings. But in assessment order A.O.levied 234C interest.So is the A.O.s contention right or what Mr.A did was right?Can Mr. A file rectification letter u/s.154 in relation to same?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 January 2009 A filed a revised return. Therefore returned income is the income of the revised return. Accordingly interest u/s 234C can be chargeable.

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