TMI Blog2012 (7) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... les of natural justice that every judicial /quasi -judicial body/authority must pass a reasoned order, which should reflect application of mind by the concerned authority to the issues/points raised before it which was missing in the order - as the impugned order suffers from lack of reasoning and is not a speaking order the case is restored back to file of CIT(A) with the directions to readjudicate the issue - decided against assessee. - ITA No.5517/Del/2011 - - - Dated:- 12-6-2012 - SHRI U.B.S.BEDI, AND SHRI A.N.PAHUJA, JJ. Revenue by : Shri A.K.Singh, DR. Assessee by : None. ORDER A.N.PAHUJA : This appeal filed on 8th December, 2011 by the Revenue against an order dated 5th September, 2011 of learned CIT(A)-V, New Delhi, raises the following grounds:- 1. The ld.CIT(A) has erred in holding that interest u/s 234B has not chargeable. 2. The ld.CIT(A) has, inter-alia, ignored like following judgments where it has been held that charging of interest u/s 234A, 234B 234C is mandatory as the interest is compensatory in nature and that the authorities have no discretion in this regard. (i) CIT Vs. Anjum N.H.Ghaswala 252 ITR 01 (SC). (ii) M.R.Patta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the above three reasons, I am convinced that interest u/s 234B is not chargeable in this case and is directed to be deleted. 5. The Revenue is now in appeal before us against the aforesaid findings of the ld. CIT(A). The ld. DR merely supported the order of the AO. 6. We have heard the ld. DR and have gone through the facts of the case. As is apparent from the aforesaid facts, the ld.CIT(A), without analyzing the facts of the case, deleted levy of interest merely on the submissions of the assessee. We find that the ld. CIT(A) did not analyse the facts of the case in the light of decision of the Hon ble Supreme Court in the case of JCIT Vs. Rolta India Ltd.,330 ITR 470, rendered on 7th January, 2011 holding that section 115JA/115JB is a self contained code and all the companies were liable for payment of advance tax u/s115JB and consequently, the provisions of section 234B and 234C of the Act were applicable in the event of default in the payment of advance tax. While holding so, their Lordships considered their earlier decision in the case of Kwality Biscuits Ltd. (supra) followed by the ld. CIT(A). The relevant observations of the Hon ble Apex Court are as under:- 7. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of tax deducted or collected at source. Thus, there is no exclusion of Section115J/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 ITR 519 and, according to the Karnataka High Court, the profit as computed under the Income Tax Act, 1961had to be prepared and thereafter the book profit as contemplated under Section 115J of the Act had to be determined and then, the liability of the assessee to pay tax under Section 115J of the Act arose, only of the total income as computed under the provisions of the Act was less than 30%of the book profit. According to the Karnataka High Court, this entire exercise of computing income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 115JA/115JB. For the foretasted reasons, Circular No. 13/2001 dated 9.11.2001 issued by CBDT reported in 252 ITR(St.)50 has no application. Moreover, in any event, para 2 of that Circular itself indicates that a large number of companies liable to be taxed under MAT provisions of Section 115JB were not making advance tax payments. In the said circular, it has been clarified that Section 115JB is a self-contained code and thus, all companies were liable for payment of advance tax under Section 115JB and consequently provisions of Sections 234 Band 234C imposing interest on default in payment of advance tax were also applicable. 10. For the afore stated reasons CIT succeeds in the civil appeal arising out of S.L.P. (C) No. 25746 of 2009 (Jt. CIT v. Rolta India Ltd.) as also in the civil appeal arising out of S.L.P.(C) No. 18367 of 2010 (CIT-3 v. Export Credit Guarantee Corporation of India Ltd.). Consequently, Civil Appeal No. 459 of 2006 (Nahar Exports v. CIT) and Civil Appeal No. 7429 of2008 (Lakshmi Precision Screws Ltd. v. CIT) stand dismissed with no order as to costs. 7. As is apparent from the aforesaid observations in para 5.2 of the impugned order, the ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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