Assessee-company was a successor of company Samruddhi Cement Ltd\u00a0 which was incorporated on 4-9-2009 as a subsidiary of Grasim Industries Ltd . Grasim Industries Ltd\u00a0 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.\u00a0 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.\u00a0 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\u00a0 Samruddhi Cement Ltd\u00a0 had not paid advance tax instalments falling due on 15-6-2009 and 15-9-2009 and, thus, interest under S. 234C was levied.\u00a0\u00a0 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.\u00a0 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\u00a0 Samruddhi Cement Ltd. \u00a0Accordingly the interest levied upon assessee under S.\u00a0 234C was to be waived. (AY. 2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 234C : Interest-Deferment of advance tax\u2013Demerger of the unit\u2013Not justified in levying the interest for period before acquisition of cement business by assessee-Interest is directed to be waived. [S. 119(2), Art. 226]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8923","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2jV","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=8923"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8923\/revisions"}],"predecessor-version":[{"id":8924,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8923\/revisions\/8924"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=8923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=8923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=8923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}