TMI Blog2011 (3) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... ections 234B and 234C shall be payable on failure to pay advance tax in respect of tax payable under Section 115JA/115JB - Decided against the assessee - I.T.A. No.176 of 2003 - - - Dated:- 4-3-2011 - MR. JUSTICE ADARSH KUMAR GOEL, MR. JUSTICE RAJESH BINDAL, JJ. Ms. Urvashi Dhugga, Sr. Standing Counsel for the appellant. Mr. Akshay Bhan, Advocate for the respondent. ADARSH KUMAR GOEL, J. 1. This order will dispose of I.T.A. Nos.176 to 181 of 2003 as it is stated that all the appeals involve common question of law. 2. I.T.A. No.176 of 2003 has been preferred by the revenue under Section 260-A of the Income Tax Act, 1961 (for short, the Act ) against the order of the Income Tax Appellate Tribunal, Chandigarh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce 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 assessee was bound to pay advance tax under the said scheme of the Act. Section 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 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. The expression assessed tax is defined to mean the tax assessed on regular assessment which means the tax determined on the application of Section 115J/115JA in the regular assessment. 9. The question which remains to be considered is whether the assessee, which is a MAT Company, was not in a position to estimate its profits of the current year prior to the end of the financial year on 31st March. In this connection the assessee placed reliance on the judgment of the Karnataka High Court in the case of Kwality Biscuits Ltd. v. CIT reported in (2000) 243 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k Mahindra Finance Ltd. reported in (2003) 130 TAXMAN 730 which decided the issue in favour of the Department and against the assessee. It appears that none of the assesses challenged the decisions of the Gauhati High Court, Madhya Pradesh High Court as well as Bombay High Court in the Supreme Court. However, it may be noted that the judgment of the Karnataka High Court in Kwality Biscuits Ltd. was confined to Section 115J of the Act. The Order of the Supreme Court dismissing the Special Leave Petition in limine filed by the Department against Kwality Biscuits Ltd. is reported in (2006) 284 ITR 434. Thus, the judgment of Karnataka High Court in Kwality Biscuits stood affirmed. However, the Karnataka High Court has thereafter in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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