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2014 (8) TMI 945 - AT - Income TaxDisallowance u/s 14A - Levy of interest under section 234B and 234C - tax payable under section 115JB - Held that:- first of all, once, on the issue of disallowance under section 14A, in the computation of book profit under section 115JB, which was the subject matter of rectification of proceedings under section 154 earlier, the Tribunal has already decided that such a disallowance is outside the scope of 154 proceedings as it was highly debatable in nature then the entire proceedings under section 154, come to an end. Once the original proceedings under section 154, has been decided in such a manner, then there was no occasion to rectify the earlier order of the learned Commissioner (Appeals) again under section 154, for the second time. That apart on merits also, whether the interest under section 234B and 234C are to be levied on account of retrospective amendment brought in the statute in a subsequent date is again a matter of great debate because it cannot be held that the assessee at the time of filing of return of income could have foreseen such an amendment and was obliged to pay any kind of advance tax especially on a disallowance under section 14A, when the explanation to section 115JB was brought in the statute by Finance Act, 2008, with retrospective effect from 1st April 2001. In such a situation, it cannot be said that the assessee was liable to pay advance tax at the time of filing of return of income when such a provision did not exist in the statute. - Following decision of Emami Ltd. v/s CIT, [2011 (6) TMI 163 - CALCUTTA HIGH COURT] - Decided in favour of asessee.
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