2013 (10) TMI 937

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....ra dated 28.4.2006 in ITA No.136/Agra/2003 for assessment year 2001-02, has been filed on the following substantial questions of law:- "(i) Whether on the facts and in the circumstances of case the ITAT was correct in sustaining the interest u/s 234-B and 234-C of the Income Tax Act, as the income was assessed u/s 115 JB of the Act and the appellant had no obligation to pay advance and interest thereon. (ii) Whether the Tribunal was correct to distinguish the decision of Quality Biscuits Ltd vs. CIT 243 ITR 519 (Kar). (iii) Whether the Tribunal rightly held that decision of ACIT vs. Hindustan Steels Industries (India) (2005) TTJ (Agra) wherein it was held that in absence of jurisdictional High Court decisions and in view of conflic....

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....rose, 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 accordance with the provisions of the Companies Act, 1956 ....

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....n 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 advance tax in respect of tax payable under Section 115JA/115JB. For the aforestated reasons, Circular No. 13/2001 dated 9.11.2001 issued by CBDT reported in 252 ITR(St.)50 has no application. Moreover, in any event, para 2 of that Circular itself indicates that a large number of companies liable to be taxed under MAT provisions of Section 115JB were not making advance tax payments. In the said circular, it has been clarified that Sect....