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)