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2011 (3) TMI 940 - HC - Income TaxAppeal to High Court - Whether interest is leviable under Sections 234B and 234C in case of an assessment of a Company, on the basis of book profits under Section 115JA, even when the entire exercise of computing income under section 115J is done at the end of the financial year, and the provisions of Sections 207 to 210 cannot be made applicable until and unless the accounts are audited and balance sheet prepared - Held that the matter is covered against the assessee by judgment of the Supreme Court in Jt.C.I.T., Mumbai v. M/s Rolta India Ltd. 2011 -TMI - 201466 - SUPREME COURT OF INDIA which has also been followed by this Court in 2009 -TMI - 32685 - PUNJAB AND HARYANA HIGH COURT CIT Chg. V. Steel Strips - The appeals are dismissed in favour of Revenue.
Issues:
1. Appeal against the order of the Income Tax Appellate Tribunal. 2. Substantial questions of law raised by the appellant. 3. Levying of interest under Sections 234B and 234C of the Income Tax Act, 1961. 4. Impugned order's compliance with judicial precedent and discipline. Issue 1: Appeal against the order of the Income Tax Appellate Tribunal The High Court dealt with two appeals, ITA No.589 of 2006 and ITA No.588 of 2006, filed by the assessee against the order of the Income Tax Appellate Tribunal, Delhi Bench `D` New Delhi dated 9.6.2006. Both appeals were related to the same matter, and it was stated that they involved a similar question. The appeals were preferred under Section 260-A of the Income Tax Act, 1961. Issue 2: Substantial questions of law raised by the appellant The appellant raised several substantial questions of law in the appeals. These questions included whether the Tribunal was legally correct in dismissing the appeal of the assessee in light of certain judgments, whether the Tribunal misdirected itself in law and facts, and whether interest under Sections 234B and 234C of the Income Tax Act, 1961, is leviable in certain circumstances. The appellant also questioned the compliance of the impugned order with the principle of judicial precedent and judicial discipline. Issue 3: Levying of interest under Sections 234B and 234C of the Income Tax Act, 1961 One of the substantial questions raised in the appeals was whether interest is leviable under Sections 234B and 234C of the Income Tax Act, 1961, in the case of a company, particularly when the income computation under Section 115J is done at the end of the financial year after auditing the accounts and preparing the balance sheet. This issue raised a significant legal question regarding the timing and applicability of interest provisions in such scenarios. Issue 4: Impugned order's compliance with judicial precedent and discipline The High Court noted that the matter was covered against the assessee by a judgment of the Supreme Court in a specific case, which was also followed by the High Court in another case. Based on this, both appeals were dismissed. The decision highlighted the importance of judicial precedent and the adherence to legal principles established by higher courts in determining the outcome of the appeals before the High Court. In conclusion, the High Court, comprising Mr. Justice Adarsh Kumar Goel and Mr. Justice Ajay Kumar Mittal, addressed various substantial legal questions raised by the appellant in the appeals against the order of the Income Tax Appellate Tribunal. The judgment emphasized the significance of judicial precedent and compliance with legal principles in deciding the outcome of the appeals. Ultimately, based on the precedents cited, both appeals were dismissed.
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