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2018 (5) TMI 1268 - HC - Income TaxTax liability arising due to MAT provisions - Levy of interest u/s 234B and 234C, while computing the MAT under the deeming provisions of Section 115J - Held that:- The Hon'ble Supreme Court, in the case of Rolta India Ltd., (2011 (1) TMI 5 - SUPREME COURT OF INDIA) considered the correctness of an order passed by the Karnakata High Court in the case of Kwality Biscuits (supra) and took into consideration various decisions of the other High Courts and held that the decision of the Karnataka High Court in the case of Kwality Biscuits Ltd. (1999 (11) TMI 48 - KARNATAKA High Court) stood affirmed by the intra Court [2006 (4) TMI 121 - SUPREME Court] and held that interest under Sections 234 B and 234 C shall be payable on failure to pay advance tax in respect of tax payable under Section 115 JA/115 JB In the light of the law laid down by the Hon'ble Supreme Court in the case of Rolta India Ltd., (2011 (1) TMI 5 - SUPREME COURT OF INDIA) we have to necessarily hold that the Division Bench of this Court in the case of Geetha Ramakrishna Mills Pvt. Ltd. (2006 (8) TMI 112 - MADRAS HIGH COURT), does not lay down the correct legal principle that that, interest under Sections 234 A, 234 B and 234 C can be levied even if income is computed under Section 115 J. We may hasten to add that the Division Bench in Geetha Ramakrishna Mills Pvt. Ltd's case (supra), opined that the Appeal filed by the Revenue against the judgement of the Karnataka High Court in the case of Kwality Biscuits Ltd., (1999 (11) TMI 48 - KARNATAKA High Court) was dismissal simpliciter (2006 (4) TMI 121 - SUPREME Court) and would not be a declaration of the law. However, as pointed out by us earlier, it were the Civil Appeals, which were dismissed by the Hon'ble Supreme Court and not the Special Leave Petitions. Decided in favor of assessee.
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