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2011 (7) TMI 961 - HC - Income TaxReopening of assessment - excess deduction claimed u/s 80HHC and 80-I - failure to pay the advance tax on the assessed income calls for pay interest under section 234B - MAT Provision - Held that:- The assessee filled its original return declaring income at Rs. 43,58,142 which was processed under section 143(1)(a) and AO found that the assessee has claimed excess deduction under sections 80HHC and 80-I which were allowed while processing the return under section 143(1)(a) on February 26, 1990, was served upon the assessee on October 11, 1990. Thereafter, the assessment under section 147/143(3) of the Income- tax Act was framed on August 25, 1992, and the AO charged interest under section 234B. On going through the provisions of Explanations 1 and 2 of section 234B, CIT(A) came to the conclusion that the interest under section 234B can only be charged by the AO in the case of regular assessment framed u/s 143(1)(a) or first time under section 143(3) because sub-section (3) of section 234B gives power to the AO to increase the interest under section 234B if the interest is charged under section 143(1) or under regular assessment and not otherwise. Thus keeping in view the provisions of section 234B no illegality or infirmity in the well reasoned order of the CIT (A) because assessment framed under section 147 being not made for the first time is not a regular assessment and, hence, the order of the CIT(A) in holding that the interest under section 234B can only be charged in a case of regular assessment, does not call for any interference. In the case of Jindal Thermal Power Co. Ltd. v. Deputy CIT reported in [2006 (3) TMI 95 - KARNATAKA High Court] distinguished its own decision in the case of Kwality Biscuits Ltd. (1999 (11) TMI 48 - KARNATAKA High Court) and held that section 115JB is a self-contained code pertaining to MAT, which imposed liability for payment of advance tax on MAT companies and, therefore, where such companies defaulted in payment of advance tax in respect of tax payable under section 115JB, it was liable to pay interest under sections 234B and 234C of the Act - Alternative contention of the assessee also rejected as the order of the apex court dismissing civil appeal reported as Kwality Biscuits Ltd.'s case [2006 (4) TMI 121 - SUPREME Court] would not come to its rescue in view of the decision of Rolta India Ltd.'s case [2011 (1) TMI 5 - SUPREME COURT OF INDIA] - Decided against the assessee
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