TaxTMI 
TaxTMI 
2012 (7) TMI 465
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....is mandatory as the interest is compensatory in nature and that the authorities have no discretion in this regard. (i) CIT Vs. Anjum N.H.Ghaswala 252 ITR 01 (SC). (ii) M.R.Pattabhiram Vs. CIT 262 ITR 501 (Kar). (iii) CIT Vs. Sant Ram Mangat Ram Jewellers 264 ITR 564 (SC). 3. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal." 2. At the outset, none appeared before us on behalf of the assessee nor submitted any request for adjournment. Considering the nature of the issue and the findings of the ld. CIT(A), the Bench proceeded to dispose of the appeal after hearing the ld. DR. 3. Facts, in b....
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....from 1st April, 2001, therefore, no interest should be charged u/s 234B of the Act, advance tax being not payable on the said disallowance of provision. In the light of these submissions, the ld. CIT(A) without analyzing the facts of the case in the light of decisions cited before him, concluded as under:- "5.2 After careful consideration of all the above three reasons, I am convinced that interest u/s 234B is not chargeable in this case and is directed to be deleted." 5. The Revenue is now in appeal before us against the aforesaid findings of the ld. CIT(A). The ld. DR merely supported the order of the AO. 6. We have heard the ld. DR and have gone through the facts of the case. As is apparent from the aforesaid facts, the ld.CIT(A), wit....
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....J/115JA of the Act. Hence, levying of interest was inescapable. The assessee was bound to pay advance tax under the said scheme of the Act. Section 115J/115JA of the Act were special provisions which provided that where in the case of an assessee, the total income as computed under the Act in respect of any previous year relevant to the assessment year is less than 30% of the book profit, the total income of the assessee shall be deemed to be an amount equal to 30% of such book profit. The object is to tax zero-tax 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 insertio....
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....ion the assessee placed reliance on the judgment of the Karnataka High Court in the case of Kwality Biscuits Ltd. v. CIT reported in (2000) 243 ITR 519 and, according to the Karnataka High Court, the profit as computed under the Income Tax Act, 1961had to be prepared and thereafter the book profit as contemplated under Section 115J of the Act had to be determined and then, the liability of the assessee to pay tax under Section 115J of the Act arose, only of 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 provision....
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....the judgment of Karnataka High Court in Kwality Biscuits stood affirmed. However, the Karnataka High Court has thereafter in the case of Jindal Thermal Power Company Ltd. v. Dy. CIT reported in (2006)154 TAXMAN 547 distinguished its own decision in case of Kwality Biscuits Ltd. (supra) and held that Section 115JB,with which we are concerned, is a self-contained code pertaining to MAT, which imposed liability for payment of advance tax on MAT companies and, therefore, where such companies defaulted in payment of advance tax in respect of tax payable under Section 115JB, it was liable to pay interest under Sections 234B and 234C of the Act. Thus, it can be concluded that interest under Sections 234B and 234C shall be payable on failure to pay....
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.... is cryptic and grossly violative of one of the facets of the rules of natural just ice, namely, that every judicial /quasi -judicial body/authority must pass a reasoned order, which should reflect application of mind by the concerned authority to the issues/points raised before it . The application of mind to the material facts and the arguments should manifest itself in the order. Sect ion 250(6) of the Act mandates that the order of the CIT(A) while disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision. The requirement of recording of reasons and communication thereof by the quasi- judicial authorities has been read as an integral part of the concep....