Interest u/s 234B/C computed by AO

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Student
67 Points Joined August 2015
in case of scrutiny assessment how AO compute interest u/s 234A/B/C ?(in case of company)

It is more than what we computed earlier(by hand) and also computed by software/utility.

for example.
AY 2017-18, Due date 31.10.2017,
Tax Liability 17832650
TDS 7164225, ADV tax on each period 10L+10L+25L+40L=85L and after 15/3/17 10L. under 140A= 12.60L.

interest u/s 234B by AO = 160984.
order u/s 143(3) 12/12/2019.
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On 26 December 2019 at 15:03 Report
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C.A FINAL STUDENT AND QUALIFIED C.M.A
563 Points Joined December 2013

If the A.O has made any additions to the returned Income, then he may simultaneously recompute the 234 B or 234 C interests on the enhanced Income and raise a fresh demand of Notice U/s 156.Computation Sheet shall also be attached with order copy. 

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On 26 December 2019 at 17:21
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Student
67 Points Joined August 2015
But the computation of such interest is not there. the final amount of interest showing in notice, such as 234B, 234C
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On 26 December 2019 at 17:23
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C.A FINAL STUDENT AND QUALIFIED C.M.A
563 Points Joined December 2013

Please confirm if there is any addition or not? or else he may have erred.Bring to his Notice. 

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On 26 December 2019 at 17:31
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Student
67 Points Joined August 2015
Yes there is an addition of rs. 383850,
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On 26 December 2019 at 17:32
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C.A FINAL STUDENT AND QUALIFIED C.M.A
563 Points Joined December 2013

Then in that case, you have to challenge the addition first (if you feel it is invalid).Interest component is dependent on Tax .

Without questioning the Tax component how could  you question its dependent , I mean Interest.Moreover Interest U/s 234 A, B, C is not penal in Nature.Hence it shall be levied.

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On 26 December 2019 at 17:36
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Student
67 Points Joined August 2015
The above addition is valid and with this addition the Tax liability is increased but the Interest computation is different between us and AO.
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On 26 December 2019 at 17:39
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C.A FINAL STUDENT AND QUALIFIED C.M.A
563 Points Joined December 2013

You may have calculated on  Tax liability (after giving credits to Advance Tax and T.D.S).But A.O will compute on addition also.

Also the period (months) shall differ for both you.Since according to him it is still payable he will calculate up to present month.

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On 26 December 2019 at 17:53
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Student
67 Points Joined August 2015
Okay, can I ask AO to provide their computation ?
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On 26 December 2019 at 17:55
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C.A FINAL STUDENT AND QUALIFIED C.M.A
563 Points Joined December 2013

sure if not provided.computation sheet is an annexure for Scrutiny Order copy.

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On 26 December 2019 at 18:10
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Student
67 Points Joined August 2015
Computation is provided but , the calculation of interest is not there, they directly mentioned the interest amount in both the sections
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On 26 December 2019 at 19:15
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17264 Points Joined December 2018
Request for a working sheet and AO's office will surely provide it.
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On 26 December 2019 at 21:53
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28014 Points Joined May 2017
Interest is not applicable in case the assesse is a senior citizen....
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On 16 January 2020 at 15:04


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