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Tax Publishers
Levy of interest under section 234-C via
rectification proceedings under section 154 due to capital gains
Facts:
Assessee's
return was rectified under section 154 by the AO with a levy of interest under
section 234-C. Revenue's plea was that the assessee had sold a property and
returned capital gains and the pay order was dated 14-12-2013 and thus was
liable to pay advance tax and in the absence of the same interest under section
234-C was leviable. Assessee's contention was though the pay order was dated 14-12-2013
it was actually encashed only on 16-12-2013 and the actual conveyance was done
only on 19-12-2013 thus there was no levy of Section 234-C which was
called for. CIT(A) agreed with the views of the assessee to which the
revenue went in higher appeal to the ITAT -
Held
against the revenue that there was no levy of Section 234-C which was called
for in this case. The actual date of sale is the date of conveyance as per
Transfer of Property Act, 1882.
Ed. Note:
The hyper technical view of the revenue with one day impact/shift needs to be
noted. Such cases are levied on what rationale or premise is seldom known as to
file an appeal from the revenue's side before ITAT a departmental clearance is
a must.
Case: DCIT v. Padmakar Gopal Bhide 2023 TaxPub(DT) 4225 (Pun-Trib)
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