Dismissed appeals affirming interest liability under Income-tax Act for income determined under specified sections. Precedents support decision.

The appeals were dismissed, affirming the liability of the assessee to pay interest under sections 234B and 234C of the Income-tax Act, 1961, even when income is determined under sections 115J/115JA/115JB. Precedents and legal interpretations supported the decision, emphasizing the applicability of interest in such cases. The court upheld the revenue's right to charge interest in assessments based on "Book Profits" under the specified sections of the Act.

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Issues:
1. Whether the Income Tax Appellate Tribunal was correct in upholding the order of the CIT(A) directing not to charge interest under sections 234B and 234C of the Income-tax Act, 1961, when the total income was determined under section 115J of the ActRs.

Analysis:
1. The case involved a Tax Appeal against the order of the Income Tax Appellate Tribunal, where the assessee's total income was determined under scrutiny, and interest was charged by the Assessment Officer. The CIT(A) allowed the appeal of the assessee, leading to an appeal by the revenue before the Tribunal, which was dismissed.
2. The substantial question of law raised was whether interest under sections 234B and 234C should be charged when the total income was determined under section 115J of the Act. The decision of the Apex Court in the case of Joint Commissioner of Income Tax v. Rolta India Ltd. was cited, emphasizing that interest under section 234B applies to all companies, including those liable to pay tax under section 115J/115JA.
3. Another case, M/s Riddhi Siddhi Gluco Boils Ltd. v. Assistant Commissioner of Income Tax, addressed a similar issue, where the Division Bench relied on the Apex Court's decision in the Rolta India Ltd. case, concluding that interest under sections 234B and 234C is applicable in cases of assessment based on "Book Profits" under section 115JB.
4. The issue was further examined in a case before the Punjab and Haryana High Court, where it was held that interest under sections 234B and 234C is chargeable in respect of income determined on the basis of book profit under section 115JA of the Act. The court referred to the judgment in CIT v. Nahar Spg. Mills Ltd., following the Rolta India Ltd. case.
5. Considering the precedents and legal interpretations, it was established that interest under sections 234B and 234C is payable when income is determined under sections 115J/115JA/115JB of the Act. The appeals were dismissed, affirming the liability of the assessee to pay interest as per the provisions of the Act.
6. The judgments rendered in various cases provided a clear direction that interest under sections 234B and 234C is applicable even when income is determined under sections 115J/115JA/115JB. The questions of law were answered against the assessee, upholding the revenue's right to charge interest in such cases.

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