TMI Blog2017 (12) TMI 664X X X X Extracts X X X X X X X X Extracts X X X X ..... against two separate orders of Ld. CIT(A), Jaipur both dated 12.09.2017 for A.Ys. 2013-14 2014-15 respectively. The assessee has raised common grounds in these appeals, the grounds for A.Y. 2013-14 are as under:- 1. On the facts and in the circumstances of the case and in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing officer in charging interest u/s 234B of the Income Tax Act, 1961 by wrongfully applying provisions of section 208 of the Income Tax Act, 1961 for depositing Alternative Minimum Tax (AMT) as self assessment tax and as advance tax. Thus the action of the Ld. AO deserves to be held bad in law and the consequent interest u/s 234B of ₹ 436625/- deserves to be deleted. 2. The Learned CIT(A) has erred in confirming the action of the Learned Assessing officer in treating AMT as Income Tax to be deposited in Advance as per the provisions of Section 208 of the Income Tax Act, 1961 and charged interest u/s 234B by alleging default in depositing advance tax. Thus the action of the Ld. AO deserves to be herd bad in raw and consequent interest u/s 234B of ₹ 436625/- deserves to be deleted. 3. On the facts and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jindal Thermal Power Co. Ltd. vs. DCIT 154 taxman 547 is misplaced as these decisions are not on section 115JC but these decisions were rendered with reference to section 115JB which is in respect of MAT whereas section 115JC was introduced in the statute w.e.f. 01.04.2013 and proceeds for payment of alternative minimum tax for the assessee other than corporate assessee. The ld. AR then contended that in case of corporate assessee the books of accounts are required to be maintained as per the provisions of Companies Act whereas in case of other assessee when the books of account are not required to maintain as per companies Act then, it is not possible to estimate the income in advance with a reasonable accuracy. The ld. AR has thus contended that the provisions of Section 115JB cannot be compared with the provisions of section 115JC and therefore, the assessee cannot be expected to pay the advance tax on the basis of books profits in terms of section 115JC. The ld. AR then contended that the alternative minimum tax as per the provisions of section 115JC is payable an adjusted total income and as such income is deemed to be total income. There is nothing under this provision requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 208 on account of tax liability u/s 115JC and consequently no interest can be levied u/s 234B on such tax liability. 4. On the other hand, the ld. DR has submitted that the issue is covered by the decision of Hon ble Supreme Court in case of CIT vs. Rolta India Ltd. 330 ITR 470 as well as decisions of Hon ble Gujarat High Court in case of JCIT vs. Sumit Industries Ltd. 54 taxmann.com 345 and decision of Hon ble Punjab and Haryana High Court in case of CIT vs. Rana Sugars Ltd. 14 taxmann.com 191. The ld. DR has also relied upon the orders of the ld. CIT(A) and submitted that the ld. CIT(A) has followed the decision of Hon ble Supreme Court as well as Hon ble High Court while deciding this issue. 5. We have considered the rival submissions as well as relevant material on record. At the outset, we find that this issue of levy of interest u/s 234B in respect of tax liability in accordance with the provisions of section 115JC of the Act is a highly debatable issue and therefore, would be beyond the purview and scope of the provisions of section 154 of the Act where by only a mistake apparent and manifest on record can be rectified which does not require a long drawn reasoning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e deduction under that section is claimed.] ( 3) Every person to whom this section applies shall obtain a report, in such form as may be prescribed30, from an accountant, certifying that the adjusted total income and the alternate minimum tax have been computed in accordance with the provisions of this Chapter and furnish such report on or before the due date of furnishing of return of income under sub-section (1) of section 139.] We find that the provisions of section 115JC though applicable to a different set off of persons however, the scheme and objective of the said provision is akin and pari materia to the provisions of section 115JB. The purpose and objects of introduction of provision in the statute is to pay the tax by the persons other than company on book profit even if the tax liability on regular assessment is zero. Therefore, the intent of legislation to introduce this provision is to bring the person other than the company in the preview of payment of tax of AMT on book profit who are otherwise paying zero tax or very less tax. In fact this is not a true tax liability but only collection of tax which can be adjusted against the future tax liability of ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ability of Section 234B is that assessee is liable to pay tax under Section 208 and the expression assessed tax is defined to mean the tax on the total income determined under Section 143(1) 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. 8. Relying on the above said decision of Hon'ble Apex Court, where the issue of deletion of interest leviable under Section 234B and 234C of the Act, the Division Bench of this Court in the case of Riddhi Siddhi Gluco Boils Ltd. v. Asstt. CIT has held as under: '1. The assessee has challenged the order of Income Tax Appellate Tribunal dated 31.3.2010 raising following questions for our consideration: 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 234C of the Act in case of an assessment order being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces of the case on the true and correct interpretation of the provisions of Section 115JA the interest under Sections 234B and 234C is to be charged under Section 143(1) (a) as a prima facie adjustment whereby no such charge made under Section 143(3)? ( ii) Whether on the true and correct interpretation of the provisions of Sections 115JA, 234B, 234C debatable issues can be covered under Section 143(1)(a)? 3. Briefly, the facts as narrated in ITA No.406 of 2005 may be noticed. The assessee filed its return of income for Assessment Year 1998-99 on 27-11-1998 at ₹ 7,45,871/-after excluding brought forward losses of ₹ 10,23,33,050/-. Since after claiming brought forward losses of ₹ 10,23,33,050/-, the taxable income worked out to be less than 30% of the book profit, the assessee filed its return of income at ₹ 2,23,69,890/- by applying the provisions of Section 115JA of the Act. The return was processed under Section 143(1)(a) of the Act on 31.05.1999. While processing the return, the Assessing Officer vide order dated 14-11-2000, Annexure A.3, made an adjustment to the returned income for an amount of ₹ 5,80,579/- being the capital expenditu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax in respect of tax payable u/s 115JA/115JB of the Act. A similar view has been taken by the Hon ble Punjab and Haryana High Court in case of CIT vs. Rana Sugars Ltd. (supra) and held in paras 6 and 7 as under:- 6. The Apex Court in Rolta India Ltd.'s case (supra) had recorded as under:- 7. In our view, Section 115J/115JA are special provisions. Section 207 envisages that tax shall be payable in advance 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 115J/115JA of the Act we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 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 if 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 or the book profits of the company could be done only at the end of the financial year and hence the provisions of Sections 207, 208, 209 and 210 (predecessors of Sections 234B and 234C) were not applicable until and unless the accounts stood audited and the balance sheet stood prepared, because till then even the assessee may not know whether the provisions of Section 115J would be applied or not. The Court, therefore, held that the liability would arise only after the profit is determined in accordance with the provisions of the Companies Act, 1956 and, therefore, interest under Sections 234B and 234C is not leviable in cases where Section 115J applied. This view of the Karnataka High Court in Kwality Biscuits Ltd. case was not shared by the Gauhati High Court in Assam Bengal Carriers Ltd. v. CIT reported in [1999] 239 ITR 862 and Madhya Pradesh High Cour ..... 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