2017 (5) TMI 309

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....as been raised herein in this appeal. Whether on the facts and circumstances of the case the Income Tax Appellate Tribunal was justified in upholding the levy of interest under Sections 234B and 234C of the Income Tax Act, 1961 (hereinafter referred to as the Act) on the income of the appellant assessed and liable to tax as per the provisions of Section 115-J of the Act? The Tribunal has confirmed the levy of the interest under the aforesaid provisions on the income assessable to tax under Section 115J of the Act on the basis of the decisions of the Madras High Court in the case of C.I.T. Vs. Holiday Travels Pvt. Ltd.263 I.T.R. 307, Madhya Pradesh High Court in the case of Itarsi Oils and Flours Pvt. Ltd. Vs. C.I.T., 250 I.T.R. 686 an....

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....nt of advance tax liable to be paid under Section 208 of the Act and therefore, it was held that as taxable income under Section 125J of the Act is computable at the end of the year there is no question of payment of advance tax or interest thereon for non-payment. The decision of the Karnataka High Court in Kwality Biscuits Ltd. was upheld by the Supreme Court vide Commissioner of Income Tax Vs. Kwality Biscuits Ltd.(2006) 284 ITR 434 (SC) inasmuch as the appeal against the said decision was dismissed by the Supreme Court. In addition to the above decision of Gujarat High Court and the Supreme Court decision several other decisions of various High Courts have been placed reiterating the same view. In Deputy Commissioner of Tax (As....

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....ourt in Kwality Biscuits Ltd. (Supra) though may not be a speaking order but as it dismisses the appeal after it was admitted, it affirms the view taken by the Karnataka High Court. In contrast to the above decision Sri Krishna Agrawal, learned counsel appearing for the department has cited a decision of three Judges Bench of the Supreme Court in the case of Joint Commissioner of Income Tax Vs. Rolta India Ltd.[2011] 330 ITR 470 (SC). In the aforesaid decision the Supreme Court was ceased with the similar controversy with regard to charging of interest on payment of advance tax computed under Section 115JA of the Act. It relying upon the entire gamut of decision on the above point including that of Kwality Biscuits Ltd. (Supra) held t....