TaxTMI 
TaxTMI 
2011 (12) TMI 319
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....lity u/s. 208 of the IT Act. 5. Advance tax liability u/s. 208 r.w.s. 207 arises only if the 'current income' and not the assessed income subject to advance tax liability. There existed no advance tax liability as the tax on "current income" is fully covered by TDS. 6. The learned CIT(A) has omitted to consider the fact that the liability to the advance tax arose only on account of the insertion of explanation u/s. 80IA of the IT Act inserted by Finance Act, 2007 after the end of the instant previous year. 7. The learned CIT(A) has erred in mechanically concurring with the conclusions of the Assessing Officer that the case law cited was distinguishable. 8. For these and any other grounds that may be urged at/before the date of hearing it is prayed that the interest charged u/s. 234B and 234C be deleted." 3. Brief facts of the issue are that the assessee-company in the business of construction and laying of foundations, marine structures like berths, wharf, jetties etc., had filed its return of income for the assessment year under consideration on 29.11.2006 admitting a taxable income of Rs. 70,79,89,930 under the normal provisions of the Act. Consequent to a ....
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....sion is "shall" as against the word "may" used in the corresponding sections before the Finance Act, 1987. He submitted that the question in this case is whether the provisions of section 234B are applicable but not about the mandatory nature of the provisions of section 234B of the Act. 4.1 The learned counsel for the assessee submitted that the assessee filed its return of income on 30.11.2006 that is before the insertion of explanation u/s. 80IA by Finance Act 2007 claiming deduction u/s. 80IA(4) of the Act at Rs. 37,20,19,888. By virtue of the Explanation inserted in the Finance Act, 2007 clarification was made that a contractor of the eligible enterprise would not be eligible for deduction u/s. 80IA of the Act. It was stated in the Memorandum explaining the Finance Bill that this explanation was by way of clarification with retrospective effect from 1.4.2001. Before the above return was taken up for scrutiny, there were search proceedings on 10.1.2007 and the pending proceedings abated u/s. 153A of the Act. Therefore, a return was again called for by a notice on 14.9.2007 by which time the explanation came on the statute book. 4.2 The counsel submitted that the eligibili....
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....e deferred tax debited to Profit and Loss A/c.. The Bench held that the assessee was not liable to interest u/s. 234B of the Act and that administrative relief can be obtained by the assessee cannot erode the powers of the Tribunal while dealing with a valid appeal before it. 4.6 The learned counsel for the assessee further relied on the decision of Delhi Bench of this Tribunal in the case of Royal Jordanian Airlines v. Dy. DIT [2008] 25 SOT 270/[2010] 126 ITD 289 for the proposition that section 234B cannot be invoked so long as the assessee was under the bona-fide belief on the basis of a decision of the Tribunal before it was reversed. The observations of the Assessing Officer and mechanical endorsement of the CIT that the decision as not applicable is not correct. The point in issue is that whether the assessee's belief was bona-fide on the basis of the decision of the Tribunal on the applicability of section 44BBA and whether interest u/s. 234B could be charged when advance tax was not paid on the basis of the belief entertained. The provisions of section 234B come into play only if there is a statutory liability for advance tax which can be only u/s 207 r.w.s. 208 of t....
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.... regular assessment as reduced by the amount of - (i) any tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income; (ii) any relief of tax allowed under section 90 on account of tax paid in a country outside India; (iii) any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that sections. (iv) any deduction, from the Indian income-tax payable, allowed under section 91, on account of tax paid in a country outside India; and (v) any tax credit allowed to be set off in accordance with the provisions of section 115JAA.] 5.1 As per this amendment, interest is leviable on the income as determined by the assessing authority minus the income on which tax has been paid or deducted. The amendment is only to clarify the ambiguity that was felt in the original provision. The matter is no longer res integra. In the case of Parkash Agro Industries v. Dy. CIT [2009] 316 ITR 149/[2008] 170 Taxman 479 (Punj. & Har.), whil....