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J.K. Synthetics Ltd. Versus Commissioner of Income Tax

2017 (5) TMI 309 - ALLAHABAD HIGH COURT

Levy of interest under Sections 234B and 234C - income of the appellant assessed and liable to tax as per the provisions of Section 115-J of the Act - Held that:- In the instant case we are seized with the matter of the assessment for the year 1989-90 when neither of the two Sections 115JA and 115JB of the Act were in-existence what to say about Sub-Section 4 and Section 5 to the aforesaid provisions. Therefore, we are of the view that the decision of the Supreme Court in Rolta India Ltd. (2011 .....

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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 R.S. Agrawal, learned counsel for the appellant and Sri Krishna Agrawal learned counsel for the respondent. This appeal is directed against the .....

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Section 115-J of the Act? The Tribunal has confirmed the levy of the interest under the aforesaid provisions on the income assessable to tax under Section 115J of the Act on the basis of the decisions of the Madras High Court in the case of C.I.T. Vs. Holiday Travels Pvt. Ltd.263 I.T.R. 307, Madhya Pradesh High Court in the case of Itarsi Oils and Flours Pvt. Ltd. Vs. C.I.T., 250 I.T.R. 686 and the Gauhati High Court in the case of Assam Bengal Carriers Limited Vs. C.I.T. 239 I.T.R. 862. All the .....

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nly 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 incom .....

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ection 125J of the Act is computable at the end of the year there is no question of payment of advance tax or interest thereon for non-payment. The decision of the Karnataka High Court in Kwality Biscuits Ltd. was upheld by the Supreme Court vide Commissioner of Income Tax Vs. Kwality Biscuits Ltd.(2006) 284 ITR 434 (SC) inasmuch as the appeal against the said decision was dismissed by the Supreme Court. In addition to the above decision of Gujarat High Court and the Supreme Court decision sever .....

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ty Commissioner of Income Tax [2009] 313 ITR 170 Bombay. The 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 Co .....

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yment of advance tax computed under Section 115J of the Act. It was held that the decision of the Supreme Court in Kwality Biscuits Ltd. (Supra) though may not be a speaking order but as it dismisses the appeal after it was admitted, it affirms the view taken by the Karnataka High Court. In contrast to the above decision Sri Krishna Agrawal, learned counsel appearing for the department has cited a decision of three Judges Bench of the Supreme Court in the case of Joint Commissioner of Income Tax .....

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/115JB of the Act. The aforesaid decision of the Supreme Court is specifically in respect of payment of interest on failure to pay advance tax in computed under Section 115JA/115JB of the Act and not in respect non-payment of tax computed under Section 115J of the Act. The observation therein 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 inserte .....

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