TMI Blog2018 (4) TMI 1606X X X X Extracts X X X X X X X X Extracts X X X X ..... be payable on failure to pay advance tax in respect of tax payable under Section 115JA/115JB. For the aforestated reasons, Circular No. 13/2001 dated 9.11.2001 issued by CBDT has no application. - decided against assessee. - T.C.(A).No.874 of 2008 - - - Dated:- 9-4-2018 - Mr.Justice T.S.Sivagnanam Mr.Justice N.Seshasayee For the Appellant : Mr. S.Sriraman For the Respondent : Mr. S.Rajesh Junior Standing Counsel for Mr.T.R.Senthilkumar Senior Standing Counsel JUDGEMENT (Judgement of the Court was delivered by T.S.Sivagnanam, J.,) Heard Mr. S.Sriraman, the learned appearing for the appellant, and Mr. S. Rajesh, the learned Junior Standing Counsel for Mr.T.R.Senthil kumar, the learned Senior Standing Counsel fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sections 234B and 234C of the Act. Thus, it can be concluded that interest under Sections 234B and 234C shall be payable on failure to pay advance tax in respect of tax payable under Section 115JA/115JB. For the afore stated 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 selfcontained code and thus, all companies were liable for payment of advance tax under Section 115JB and consequently provisions of Sections 234B and 234C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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