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2015 (5) TMI 646 - AT - Income TaxLevy of interest u/s 234B and u/s 234C - interest for defaults in payment of advance tax - MAT income determined by the Assessing Officer under Sec.115JB - Held that:- Section 115J/115JA are special provisions. Section 207 envisages that tax shall be payable in advance during any financial year on current income in accordance with the scheme provided in sections 208 to 219 (both inclusive) in respect of the total income of the assessee that would be chargeable to tax for the assessment year immediately following that financial year. Section 215(5) of the Act defined what is “assessed tax”, i.e., tax determined on the basis of regular assessment so far as such tax relates to income subject to advance tax. The evaluation of the current income and the determination of the assessed income had to be made in terms of the statutory scheme comprising section 115J/115JA of the Act. Hence, levying of interest was inescapable. The pre-requisite condition for applicability of section 234B is that the assessee is liable to pay tax under section 208 and the expression “assessed tax” is defined to mean the tax on the total income determined under section 143(1) or under section 143(3) as reduced by the amount of tax deducted or collected at source. Thus, there is no exclusion of section 115J/115JA in the levy of interest under section 234B. When the levy of interest is mandatory and the Hon’ble Apex Court in Saurashtra Kutch Stock Exchange Ltd. [2008 (9) TMI 11 - SUPREME COURT] duly explains the correct law finding the assessee liable, the assessee cannot seek to escape the mandatory levy being fastened on it under the plea that it had bona fide belief that it is not liable. It is not a case of reopening or revision or rectification of mistake that the assessee can take shelter under the plea that the issue was earlier debatable and/or two views were possible. A belief howsoever bona fide cannot exonerate the assessee from the mandatory levy of interest u/s 234B and 234C of the Act on assessment on Book Profit u/s 115JB of the Act. In view of the above said discussion and placing reliance upon the decision of the CIT vs Anjum M.H.Ghaswala and Others (2001 (10) TMI 4 - SUPREME Court) , CIT vs Rolta India Ltd. (2011 (1) TMI 5 - SUPREME COURT OF INDIA ) and CIT vs Saurashtra Kutch Stock Exchange Ltd. (supra) we do not find any infirmity in the orders of the ld. CIT(A). Accordingly we uphold the same. - Decided against assessee.
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