TMI Blog2011 (1) TMI 1163X X X X Extracts X X X X X X X X Extracts X X X X ..... titled to deduction under section 80IB of the Act while computing its book profits under section 115JB of the Act Whether, in the facts and circumstances of the case the Income Tax Appellate Tribunal was right in law in holding that interest is leviable u/s 234B and 234C of the Act in case of assessment order being framed on "Book Profits" u/s 115JB of the Act - Held that:- in the case of M/s. Rolta India Ltd. (2011 - TMI - 201466 - SUPREME COURT OF INDIA) , interest under sections 234B and 234C is payable on failure to pay advance tax in respect of tax payable under section 115JA/115JB of the Act. Thus, it is apparent that the controversy raised vide the said question stands concluded against the assessee by the said decision. In the circumstances, it is not necessary to set out the facts and contentions in detail, no legal infirmity in the impugned order of the Tribunal, appeals are accordingly dismissed - Tax Appeal No. 1077, 1078 of 2009 - - - Dated:- 10-1-2011 - Harsha Devani, H.B. Antani, JJ. S.N. Soparkar, Sr. Adv., with Swati Soparkar and Bhoomi M. Thakore for the Appellant JUDGEMENT Harsha Devani: 1. In these appeals under section 260A of the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B of the Act to submit that the said provision had been inserted with an intention that if any of the items had not been specifically provided in the Explanation (1) to sub-section (2) of section 115JB, the same can be claimed under sub-section (5) of section 115JB. The Tribunal after considering the submissions advanced on behalf of the respective parties, did not agree with the contention raised on behalf of the assessee and held that the assessee was not entitled to deduction under section 80IB of the Act while computing the book profit under section 115JB. 6. From the facts noted hereinabove, it is apparent that the provisions of sub-section (5) of section 115B of the Act form the main basis for claiming deduction of the income eligible for deduction under section 80IA and 80IB of the Act while computing the book profit under section 115JB of the Act. In this regard it may be germane to refer to the provisions of section 115JB of the Act as it stood at the relevant time, which reads thus:- "115-JB. Special provision for payment of tax by certain companies.- (1) Notwithstanding anything contained in any other provision of this Act, where in the case of an assessee, being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or amounts set aside to provisions made for meeting liabilities, other than ascertained liabilities, or (d) the amount by way of provision for losses of subsidiary companies; or (e) the amount or amounts of dividends paid or proposed; or (f) the amount or amounts of expenditure relatable to any income to which Section 10 other than the provisions contained in clause (23-G) thereof or Section 10-A or Section 10-B or Section 11 or Section 12 apply. if any amount referred to in clauses (a) to (f) is debited to the profit and loss account, and as reduced by- (i) the amount withdrawn from any reserve or provision (excluding a reserve created before the 1st day of April, 1997 otherwise than by way of a debit to the profit and loss account), if any such amount is credited to the profit and loss account: Provided that where this section is applicable to an assessee in any previous year, the amount withdrawn from reserves created or provisions made in a previous year relevant to the assessment year commencing on or after the 1st day of April, 1997 shall not be reduced from the book profit unless the book profit of such year has been increased by those reserves or pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use (ii) of sub-section (1) of Section 72 or Section 73 or Section 74 or sub-section (3) of Section 74-A. (4) Every company to which this section applies, shall furnish a report in the prescribed form from an accountant as defined in the Explanation below sub-section (2) of Section 288, certifying that the book profit has been computed in accordance with the provisions of this section along with the return of income filed under sub-section (1) of Section 139 or along with the return of income furnished in response to a notice under clause (i) of sub-section (1) of Section 142. (5) Save as otherwise provided in this section, all other provisions of this Act shall apply to every assessee, being a company, mentioned in this section. (6) The provisions of this section shall not apply to the income accrued or arising on or after the 1st day of April, 2005 from any business carried on, or services rendered, by an entrepreneur or a Developer, in a Unit or Special Economic Zone, as the case may be. 7. Explanation [1] to section 115JB of the Act, lays down that for the purposes of the said section "book profit" means the net profit as shown in the profit and loss account for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the attention of the Court to a judgement and order dated 7th January, 2011 rendered by the Supreme Court in the case of Joint Commissioner of Income Tax, Mumbai vs. M/s. Rolta India Ltd. in Civil Appeal No.135 of 2011, wherein the Court has held that interest under sections 234B and 234C is payable on failure to pay advance tax in respect of tax payable under section 115JA/115JB of the Act. Thus, it is apparent that the controversy raised vide the said question stands concluded against the assessee by the said decision. In the circumstances, it is not necessary to set out the facts and contentions in detail. 10. Considering the facts of the present case in the light of the decision of the Supreme Court in the case of Joint Commissioner of Income Tax, Mumbai vs. M/s. Rolta India Ltd. (supra), the Tribunal was justified in holding that interest is leviable under sections 234B and 234C in case of assessment order being framed on "Book Profits" under section 115JB of the Act. 11. In view of the above discussion, there being no legal infirmity in the impugned order of the Tribunal, the same does not give rise to any question of law, much less, a substantial question of law, so ..... X X X X Extracts X X X X X X X X Extracts X X X X
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