TMI Blog2005 (7) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... arged under sections 234B, 234C and 154 of the Income-tax Act. 3. Assessment in this case was completed under section 143(3) on 19th March, 2000. The Assessing Officer while making the assessment, gave direction for charging of interest under sections 234B and 234C. It was mentioned by the Assessing Officer that income is being determined under section 115JA and the issue of levying interest under sections 234B and 234C in a case where income is determined under section 115JA has not become final. In spite of this categorical finding in the assessment order, the assessee moved an application under section 154 before the Assessing Officer. Vide this application under section 154, the assessee contended that interest under sections 234B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Kwality Biscuits Ltd. ( supra ). It was mentioned by the learned AR that provisions of section 115JA are similar to that of section 115J and the decision of jurisdictional High Court is squarely applicable. The learned AR relied that on the book of Income-tax by Kanga Palkhiwala in which it has been mentioned at page No..... that section 115JA is similar to section 115J. 6. The learned DR on the other hand contended that section 115JA is different from section 115J, as sub-section (4) under section 115JA makes it clear that other provisions of the Act are also applicable. It was also argued that the Assessing Officer has given his finding in the assessment order, that the decision of jurisdictional High Court is not applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... audited and the balance sheet is prepared even the assessee may not know whether the provision of section 115J would be applicable or not. The liability would be after the book profits are determined in accordance with the Companies Act. The words "for the purpose of this section" in the Explanation to section 115J(1A) are relevant and cannot be construed to extend beyond the computation of liability of tax. Accordingly we are of the view that the Tribunal was not justified in directing the charge interest under sections 234B and 234C of the Income-tax Act". 9. From the above, it is clear that the learned Karnataka High Court held that interest is not chargeable under sections 234B and 234C, as Explanation to section 115J made it c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d after credit of tax paid under section 115JA as per provisions of section 115JAA. It therefore, impliedly means that interest under sections 234B and 234C can be charged in case income is computed under section 115JA. 12. From the above discussion, it is clear that section 115JA is not exactly similar to section 115J. There is no decision of jurisdictional High Court that interest is not chargeable in case income is computed under section 115JA. Moreover, the Assessing Officer in his order has clearly mentioned that issue has not become final. The learned AR has relied on the order of this Bench in the case of assessee for assessment year 1999-2000. In that case revenue attempted to charge interest under sections 234B and 234C vide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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