She declares Rs 13.17 crore income in her ITR, then challenges it. What does ITAT say?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The ITAT Kolkata ruled that taxpayers cannot face interest under Section 234C for income they could not anticipate.
- ✓Roma Sengupta received Rs 13.17 crore from a foreign trust and included it in her return.
- ✓The tribunal allowed her to challenge the taxability of this corpus distribution on October 30.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Financial Express
- Reading Speed
- 10 Minute(s)
- Market Focus
- India Economy
Can the Income Tax Department charge Section 234C interest on income you could not have anticipated? An ITAT Kolkata ruling involving a Rs 13.17 crore foreign trust distribution explains when taxpayers can seek relief from advance tax interest.
The Income Tax Appellate Tribunal's Kolkata Bench has addressed this question in an interesting case involving a taxpayer who received Rs 13.17 crore from a foreign family trust.
The tribunal ruled that interest under Section 234C of the Income-tax Act cannot be sustained on the advance tax shortfall attributable to income that the taxpayer could not have reasonably anticipated on the prescribed instalment dates.
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