2020 (2) TMI 506

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and in law, the Ld.CIT(A) was right in directing the Assessing Officer to not to levy interest u/s 234B of the Act, on the addition made in Book Profit under MAT with respect to deduction on export profit u/s 80HHC(3), ignoring the amendment made by the Finance Act 2011 to section 115JB with retrospective effect from 01.04.2005" 3. The brief facts of the case are that the assessee is a public limited company engaged in the business of oil exploration, manufacturing of petrochemicals, polyester, fiber intermediates, textiles, generation and distribution of power and operation of jetties, and related infrastructure and investments. The assessee company has filed its return of income for AY 2005-06 on 28/10/2005, declaring total income at R....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Ld. AO, while giving effect to order of the ITAT has levied interest u/s 234B of the I.T.Act, 1961, on book profit computed u/s 115JB of the I.T.Act, 1961, for shortfall in payment of advance tax vis-à-vis, the tax assessed for the year. 4. Aggrieved by the order the of Ld. AO, the assessee had filed an appeal before the Ld.CIT(A). Before the Ld.CIT(A), the assessee has filed elaborate written submissions on the issue, which has been reproduced at para 4.1 on pages 4 to 9 of Ld.CIT(A) order. The sum and substance of arguments of the assessee before the Ld.CIT(A) are that interest u/s 234B of the Act, cannot be charged as a consequence for an addition made to the book profit u/s 115JB of the I.T.Act, 1961, in view of retrospective....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....it was categorically held that 234B interest shall not be levied on the addition made on account of retrospective amendment to the Act. He, further submitted that this issue is also covered by the decision of Hon'ble Bombay High Court, in the case of CIT vs JSW Energy Limited (2015) 379 ITR 36, where it was held that where, the assessee computed book profit, as per prevailing law, no interest u/s 234B could be levied, consequent to inclusion of various items, while computing books profit, as per Explanation to section 115JB, which has been brought on statute by the Finance Act, 2008 with retrospective effect from 01/04/2001. 7. We have heard both the parties, perused the materials available on record and gone through orders of the aut....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on 115JB, which has been brought on statute by Finance Act, 2008 with retrospective effect from 01/04/2001. We further noted that the Hon'ble Bombay High court, in the case of CIT vs KPMG in ITA No. 690/2017, dated 24/09/2009, has observed that a party cannot be called upon to perform an impossible Act, i.e to comply with the provision, which was not in force at the relevant time. The sum and substance of the ratios laid down by the Hon'ble High court of Bombay is that liability arising on account of retrospective amendment could not be fastened on the assessee, where the assessee could not have foreseen the liability, at the time of estimating his income for the purpose of payment of advance tax. In this case, additions was made to book pr....