TaxTMI 
TaxTMI 
2015 (3) TMI 274
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.... "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that interest under Section 234B of the Income Tax Act can be levied for default in payment of advance tax when the income is computed under Section 115JA of the Act? 2. The learned counsel for the assessee fairly submits that the issue raised in this appeal is no longer res integra in view of the decision of the Supreme Court in Joint Commissioner of Income Tax v. Rolta India Limited, (2011) 330 ITR 450 (SC), wherein an identical issue was answered against the assessee and in favour of the department. 3. In Rolta India Limited case, referred supra, the issue considered by the Supreme Court is as under: "A short question which a....
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....ions. Section 207 envisages that tax shall be payable in advance during any financial year on current income in accordance with the scheme provided in sections 208 to 219 (both inclusive) in respect of the total income of the assessee that would be chargeable to tax for the assessment year immediately following that financial year. Section 215(5) of the Act defined what is "assessed tax", i.e., tax determined on the basis of regular assessment so far as such tax relates to income subject to advance tax. The evaluation of the current income and the determination of the assessed income had to be made in terms of the statutory scheme comprising section 115J/115JA of the Act. Hence, levying of interest was inescapable. The assessee was bound to....
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....ssee is liable to pay tax under section 208 and the expression "assessed tax" is defined to mean the tax on the total income determined under section 143(1) or under section 143(3) as reduced by the amount of tax deducted or collected at source. Thus, there is no exclusion of section 115J/115JA in the levy of interest under section 234B. The expression "assessed tax" is defined to mean the tax assessed on regular assessment which means the tax determined on the application of section 115J/115JA in the regular assessment. 9. The question which remains to be considered is whether the assessee, which is a MAT company, was not in a position to estimate its profits of the current year prior to the end of the financial year on 31st March. In t....
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....d the Madhya Pradesh High Court in Itarsi Oil and Flours (P.) Ltd. v. CIT reported in [2001] 250 ITR 686 as also by the Bombay High Court in the case of CIT v. Kotak Mahindra Finance Ltd. reported in [2003] 130 Taxman 730 which decided the issue in favour of the Department and against the assessee. It appears that none of the assessees challenged the decisions of the Gauhati High Court, Madhya Pradesh High Court as well as the Bombay High Court in the Supreme Court. However, it may be noted that the judgment of the Karnataka High Court in Kwality Biscuits Ltd. was confined to section 115J of the Act. The order of the Supreme Court dismissing the special leave petition in limine filed by the Department against Kwality Biscuits Ltd. is report....