2009 (1) TMI 6

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.... raise the same question and accordingly the Appeal is admitted on the following question:- "Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that interest under Section 234B and 234C was leviable in case of computation of income under the provisions of Section 115JA of the Act?" 3. It was the submission on behalf of the assessee that in a case of computation of income under the provisions of Section 115JA of the Act the provisions of Section 234B and 234C are not leviable. In the instant case the Appellant had shown a book profit of Rs.6,31,77,987/- as against the computed income of Rs.45,16,690/-. As the assessee had paid short advance tax interest was charged under Section 234A....

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....made in respect of companies falling under Section 115J was not accepted. While holding so, the learned Bench observed that the view being taken is supported by the judgment of the Gauhati High Court in the case of Assam Bengal Carriers Ltd. vs. CIT (1999) 239 ITR 862 as also the judgment of the Madhya Pradesh High Court in the case of Itarsi Oils and Flours (P) Ltd. vs. CIT (2001) 250 ITR 686. The Court further held that they disagreed with the judgment of the Karnataka High Court in the case of Quality Biscuits Ltd. v. CIT (2000) 243 ITR 519.  Ordinarily this judgment of a coordinate Bench of this Court ought to have been followed. 5. The Karnataka High Court considering the contention of the assessee on the other hand held that f....

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.... Accordingly, the Court held that interest could not be charged under Section 234B and 234C of the Income Tax Act. In the instant case we are concerned with Section 115JA under Chapter XIIB. The terminology used in Section 115JA is same or similar as contained in Section 115J. The judgment of the Karnataka High Court was taken in Appeal by way of Special Leave to the Supreme Court in Commissioner of Income-tax v. Kwality Biscuits Ltd., (2006) 284 ITR 434 (SC), and the following order was passed:- "The appeals are dismissed." 7. If the Special Leave Petitions had only been dismissed then perhaps it would have been possible to say that there was no merger of the judgment of the Karnataka High Court and that the Supreme Court had refused to....