2018 (10) TMI 1357

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...."i. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in upholding the levy of interests under Sections 234B and 234C while computing the MAT under the deeming provisions of Section 115JB of the Act ? ii. Whether the Tribunal was correct in law in upholding the levy of interests when the provisions relating to advance tax in Sections 207 to 211 are not applicable to the computation under Chapter XII B? And iii. Whether the Tribunal was justified in law in upholding the levy of interest under Section 234B when there is no mandate in law either to estimate the book profit or for payment of advance tax on book profits and hence, as there is no mandate to treat the book profits as total income und....

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.... Act arose, 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,....