TMI Blog2017 (5) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... est under Section 234B and 234C of the Act on the tax computed under Section 115J would stand covered by the decision of Kwality Biscuits Ltd.approved by the Supreme Court. [2006 (4) TMI 121 - SUPREME Court] In view of above, the question hereinabove is answered in favour of assessee and against the department and it is held income computed under Section 115J for the period prior to enforcement of Section 115JA and Section 115JB would not attract interest under Section 234B and 234C of the Act. - Income Tax Appeal No. 46 of 2012 - - - Dated:- 1-5-2017 - Hon'ble Pankaj Mithal And Hon'ble Vinod Kumar Misra, JJ. For the Appellant : R. S. Agrawal For the Respondent : S.S.C. I.T., Krishna Agarwal ORDER Heard Sri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Vs.Cornerstone Brands Ltd. [2016] 387 ITR 455 (Guj.) wherein it has been held that the determination of tax under Section 115J of the Act upon a company is only after the end of relevant year and interest cannot be levied in such a case under Section 234B and 234C of the Act. In the aforesaid case apart from other questions one of the substantial of law referred to the High Court was to the following effect:- Whether having regard to the scheme of Section 115J, where the assessee's income is computed by invoking the above provisions interest under Section 234B and 234C of the Act is leviable? The High Court was of the view that the taxable income under Section 115J of the Act is only computable only at the end of the relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bombay High Court considering all the previous decisions on the point held that in view of the dismissal of appeal by the Supreme Court in Kwality Biscuits Ltd. (Supra), the judgement of the Karnataka High Court stands merged and upheld by the Supreme Court to the effect that interest under Sections 234B and 234C would not be chargeable on taxable income computed under Section 115J of the Act. The Madhya Pradesh High Court in Deputy Commissioner, Income Tax Vs. Bhopal Motors Ltd. 2010 323 ITR 684 (M.P.) held that no interest is leviable under Sections 234B and 234C where the determination of Income Tax is under Section 115J of the Act again relying upon the decision of Supreme Court in Kwality Biscuits Ltd. (Supra) affirming the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there is no exclusion of Section 115J in the levy of interest under Section 234B is not material so as to affect the right of the assessee herein. The provisions of Section 115J of the Act were inserted with effect from April, 1988 and it remained in force upto 31st March, 1991. At that time there was neither Section 115JA nor Section 115JB of the Act. The aforesaid two provisions were enforced by the Finance Act of 1996 w.e.f. 1st April, 1997 and by the Finance Act, 2000 w.e.f. 1st April 2001 respectively thereupon Sub-Section 4 and Sub-Section 5 were added to Section 115 JA and Section 115 JB of the Act. On the basis of the above additions it was observed that no distinction can be made between the computation made under eithe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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