TMI Blog2008 (4) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax, it should have been allowed on book profit of Rs. 1,80,98,156 being deemed total income under section 115JB." 3. We have heard the parties. At the time of hearing, the ld. Counsel for the assessee submitted that the issue raised in ground No. 1.1 was covered against the assessee by the judgment of the Hon ble Supreme Court in CIT v. Shirke Construction Equipment Ltd. [2007] 291 ITR 380 (SC) while the issue raised in ground No. 1.2 was covered in favour of the assessee by the order of a Special Bench of this Tribunal in Dy. CIT v. Syncome Formulations (I) Ltd. [2007] 106 ITD 193 (Mum.) (SB). The ld. DR supported the aforesaid submission made by the ld. Counsel for the assessee. In this view of the matter, ground No. 1.1 is dismissed while ground No. 1.2 is allowed. 4. Ground No. 2 taken by the assessee reads as under: "The CIT(A) erred in confirming the action of the Assessing Officer of disallowing employees and employer s contribution to Provident Fund of Rs. 1,48,950 (74,475 + 74,475) and employer s contribution to Superannuation Fund Rs. 93,094 on the ground that the said contributions have been made after the due date. The appellants submit that the CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der and allow/disallow the claim of the assessee in the light of the aforesaid principles. Ground No. 2 taken by the assessee is treated as allowed for statistical purposes. 8. Ground No. 3 reads as under: "The CIT(A) erred in directing the Assessing Officer to charge interest under section 234B as per law. The appellants submit that the CIT(A) ought to have, accepting the Supreme Court decision in the case of CIT v. Kwality Biscuits [2006] 284 ITR 434 deleted the interest of Rs. 1,92,963 under section 234B as the total income was computed under section 115JB." 9. The short issue in the case before us is whether the Assessing Officer is justified in charging interest under section 234B on the taxes levied under section 115JB of the Income-tax Act. The ld. CIT(A) has decided the issue against the assessee. 10. Learned counsel for the assessee has invited our attention to the decision of the Hon ble Supreme Court in CIT v. Kwality Biscuits Ltd. [2006] 284 ITR 434 1 by which the decision of Hon ble Karnataka High Court in Kwality Biscuits Ltd. v. CIT [2000] 243 ITR 519 2 has been upheld. Hon ble Karnataka High Court has held that interest cannot be levied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de for several matters, e.g., procedure for assessment, levy of interest, collection and recovery of tax of the amount due under section 115JA. In other words, except for the manner of computation of book profits, all the provisions of the Income-tax Act including the provisions relating to charge, definitions, recoveries, payment, assessment, interest, etc., would apply in respect of the provisions of section 115JB. For the matters not provided in section 115JB, one has to turn to other provisions of the Income-tax Act which have been made mutatis mutandis applicable to the assessees falling under section 115JB. 13. Next issue for consideration is as to whether the provisions relating to payment of advance tax under section 207 of the Income-tax Act and payment of interests for defaults or deferment in payment of advance tax as contained in section 234B are applicable to an assessee falling under section 115JB Chapter XVII of the Income-tax Act deals with collection and recovery of taxes. Part "C" of Chapter XVII of the Income-tax deals with advance payment of tax while Part "F" of Chapter XVII deals with chargeability of interest in certain cases. It is therefore quite cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccordance with the provisions of sections 208 to 209 in respect of the total income of the assessee, which would be chargeable to tax for the assessment year immediately following that financial year. Section 209 deals with the computation of advance tax based on the rates in force for the financial year, as are contained in the Finance Act. Thus the liability for payment of advance tax is in respect of the total income of the assessee, which would be chargeable to tax for the assessment year following that financial year. Since the income computed under section 115JB is deemed to be the total income of the assessee, the provisions of section 2(45) read with sections 5 and 4 clearly create a liability for payment of advance tax on such total income in terms of section 207 of the Income-tax Act. In this view of the matter, it is held that the total income computed under section 115JB is liable for payment of advance tax under Chapter XVII-C, which is mutatis mutandis applicable to the assessees falling under section 115JB by virtue of the provisions of sub-section (5) thereof. 15. Section 234B provides for levy of interest for defaults in payment of advance tax. Provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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