Assessee-company was a successor of company Samruddhi Cement Ltd  which was incorporated on 4-9-2009 as a subsidiary of Grasim Industries Ltd . Grasim Industries Ltd  demerged its cement unit which was taken over by Samruddhi Cement Ltd. Scheme of demerger was framed which envisaged 1-10-2009 as appointed date.  Scheme was approved by High Court and effective date was fixed as 18-5-2010. Scheme provided that Grasim Industries Ltd. would carry on cement business from appointed date to effective date in trust and on behalf of SCL and; advance tax payment made by Grasim Industries Ltd in respect of profits of cement business would be deemed to be paid by Samruddhi Cement Ltd. and that scheme would have retrospective effect.  Pursuant to such clause, Grasim Industries Ltd paid advance tax on profits of cement business in two instalments falling due on 15-3-2012 and 15-9-2012. AO held that  Samruddhi Cement Ltd  had not paid advance tax instalments falling due on 15-6-2009 and 15-9-2009 and, thus, interest under S. 234C was levied.   Assessee claimed for waiver of interest under S. 234C which was denied. Court held that scheme itself provided that all taxes paid by Grasim Industries Ltd. on profit of cement business arising on and after 1-10-2010 would be deemed to be paid by Samruddhi Cement Ltd and scheme was approved having a retrospective effect.  Further, Samruddhi Cement Ltd. was incorporated only on 4-9-2009 and company was not in existence on 15-6-2009. Further, by time second instalment fell due on 15-9-2009, cement business from Grasim Industries Ltd. was not acquired by  Samruddhi Cement Ltd.  Accordingly the interest levied upon assessee under S.  234C was to be waived. (AY. 2010-11)