TMI Blog2006 (11) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... nces of the case and in law, the ld. CIT(A) has erred in law by confirming learned Assessing Officer s order of reducing loss suffered from the export of trading goods amounting to Rs. 7,62,074 from the deduction claimed from the profit on export of manufactured goods." 5. The aforesaid ground was not pressed at the time of hearing. Therefore, ground No. 2 is dismissed as not pressed. 6. Ground No. 3 reads as under : "On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in holding that the export incentives does not form part of the business of industrial undertaking for the purpose of computing deduction under section 80-IA and thus erred in confirming the action of the Assessing Officer being reducing the export incentives of Rs. 1,17,45,999 from the profit of the industrial undertaking for the purpose of computing deduction allowable to the appellant under section 80-IA of the Income-tax Act, 1961." 7. We have heard the parties. The short issue is whether export incentives can be treated as profits derived from the business of industrial undertaking for the purpose of computing relief under section 80-IA of the Income-tax Act. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttention to the assessment order passed by the Assessing Officer in which the book profit under section 115JA has been computed and interest under sections 234B and 234C has been charged with reference to the provisions of sub-section (4) of section 115JA. Sub-section (4) of section 115JA specifically provides that "Save as otherwise provided in the section, all other provisions of this Act shall apply to every assessee, being a company, mentioned in this section". It is submitted by the ld. Departmental Representative that all provisions of the Income-tax Act including those of sections 234B and 234C are applicable to the assessee before us. According to him, similar provision as contained in sub-section (4) of section 115JA was absent in section 115J and therefore the decision rendered by the Hon ble Karnataka High Court and Hon ble Supreme Court in Kwality Biscuits Ltd. s case ( supra ) with reference to the provisions of section 115J could not be made applicable to defeat the express provisions enacted in the form of sub-section (4) of section 115JA. 12. We have heard the parties and considered their submissions. Sub-section (1) of section 115JA contains a deeming provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... collection and recovery of taxes. Part C of Chapter XVII of the Income-tax Act deals with advance payment of tax while Part "F" of Chapter XVII deals with chargeability of interest in certain cases. It is therefore quite clear that the provisions relating to advance payment of tax and chargeability of interest on account of default or deferment in payment of tax are part of the provisions relating to collection and recovery of tax. It is equally clear that section 115JA does not provide for the mechanism for collection and recovery of tax. The provisions of Chapter XVII of the Income-tax Act will therefore mutatis mutandis apply to the assessees covered by section 115JA due to the specific insertion of sub-section (4) in section 115JA of the Income-tax Act provided the requisite conditions for the applicability of sections 207, 234B and 234C are also satisfied. 14. We shall now turn to the issue whether the total income of the assessee falling under section 115JA is chargeable to advance tax. Section 4(1) of the Income-tax Act creates charge of income-tax in respect of the total income of the previous year of every person at the rate or rates, which may be prescribed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee falling under section 115JA by virtue of the provisions of sub-section (4) thereof. 15. Sections 234B and 234C provide for levy of interest for defaults in payment of advance tax and for deferment of advance tax. Provisions of section 234B apply where an assessee is liable to pay advance tax under section 208 but has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than 90 per cent of the assessed tax. In such a case section 234B mandates that the assessee shall be liable to pay simple interest at the prescribed rate for every month of default. The term assessed tax has been defined in Explanation 1 to section 234B(1) of the Income-tax Act to mean the tax on the total income determined under sub-section (1) of section 143 or on regular assessment as reduced by the amount of tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such income. The total income computed on the basis of a specified percentage of book profit is assessed to tax under section 143( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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