TaxTMI 
TaxTMI 
2011 (9) TMI 288
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....ort "the Act") against the order dated 13.2.2004 passed by the Income Tax Appellate Tribunal, Chandigarh Bench "B", Chandigarh (hereinafter referred to as "the Tribunal") in ITA No. 333/CHANDI/99, for the assessment year 1997-98, raising the following substantial question of law:- "Whether on the facts and circumstances of the case, the Hon'ble ITAT was right in law in upholding the decision of the CIT(A) that interest u/s 234B & 234C cannot be charged in cases where income of the assessee is computed as per provisions of section 115JA of the Income Tax Act, 1961?" 3. Briefly stated, the facts necessary for adjudication as narrated in the appeal are that the assessee filed its return on 30.11.1997 for the assessment year 199....
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....iled an appeal before the Tribunal who vide order dated 13.2.2004 upheld the order of the CIT(A) following the earlier decision of the Tribunal dated 18.11.2002 in ITA Nos. 284 and 285/Chandi/2000 (DCIT v. Upper India Steel Ltd., Ludhiana). Hence, the present appeal by the revenue. 4. We have heard learned counsel for the revenue. 5. The Tribunal while adjudicating the issue had followed the earlier decision of the Tribunal dated 18.11.2002 in Upper India Steel Ltd., Ludhiana's case (supra) against which appeals under Section 260A of the Act were filed in this Court bearing ITA Nos. 172 and 173 of 2004. This Court while reversing the decision of the Tribunal adjudicated the issue in favour of the revenue. Against the decision of th....
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....he assessee shall be deemed to be an amount equal to 30% of such book profit. The object is to tax zerotax companies. 8. Section 115J was inserted by Finance Act, 1987 w.e.f. 1.4.1988. This section was in force from 1.4.1988 to 31.3.1991. After 1.4.1991, Section 115JA was inserted by Finance Act of 1996 w.e.f. 1.4.1997. After insertion of Section 115JA, Section 115JB was inserted by Finance Act, 2000 w.e.f. 1.4.2001. It is clear from reading Sections 115JA and 115JB that the question whether a company which is liable to pay tax under either provision does not assume importance because specific provision(s) is made in the section saying that all other provisions of the Act shall apply to the MAT Company (Section 115JA(4) and Section ....
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....assessee to pay tax under Section 115J of the Act arose, only if the total income as computed under the provisions of the Act was less than 30% of the book profit. According to the Karnataka High Court, this entire exercise of computing income or the book profits of the company could be done only at the end of the financial year and hence the provisions of Sections 207, 208, 209 and 210 (predecessors of Sections 234B and 234C) were not applicable until and unless the accounts stood audited and the balance sheet stood prepared, because till then even the assessee may not know whether the provisions of Section 115J would be applied or not. The Court, therefore, held that the liability would arise only after the profit is determined in accorda....