No Addition in Assessment but Demand of Interest u/s 234B and 234C

This query is : Resolved

Quick Summary

A taxpayer filed an original return on time for AY 2018-19. Following a notice u/s 148, a revised return was filed with no changes. Despite no additions to income and correct TDS/advance tax credit, the assessment order included a demand for interest u/s 234B and 234C. The query seeks guidance on recourse, questioning whether an appeal is appropriate when no income was added.

Viral

Viral (Querist)
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07 August 2024 Dear Members,
I have a query for the facts as under:
# Return was Originaly filed within due date for AY 2018-19.
# Notice u/s 148 was issued on 11.05.2022 to file Revised Return, Return was filed with same figures as per the Original Return.
# Later Replied Filed for Notice u/s 142(1).
# Assessment Order passed u/s 147 rws 144B by Assessment Unit under Faceless Scrutiny.
# There is No Addition of Income.
# Income and Tax in the Computation sheet and Original/Revised Return are same.
# Credit of TDS and Advance Tax is properly given

But in the Computation Sheet for Order there is Interest u/s 234B and 234C shown as payable for an amount of Rs. 1,15,901/-. Though actually all the Advance Tax was paid correctly... Still there is a demand of Interest...

Query:
What is the recourse for the Demand.. As there is no Addition of Income.. Should we file Appeal ??
Request Guidance of Seniors and anybody aware of such a matter.

Thanking You.
Viral Vora
9702556399

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 August 2024 As you had filed revised return (though without any addition of income) against reply to the notice u/s. 148 IT act; the revised return is considered for the assessment. The interest calculation is based on the date of revised return. So, filing appeal may not help you in reducing the interest amount.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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08 September 2024 Good Luck.

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