2017 (6) TMI 1361 - HC - Income Tax

Non-consideration of the issues u/s 115JB and 80IB(10) - Interest u/s 234(B) and 234(C) - HELD THAT - The matter will have to be remitted to the Tribunal with regard to non-consideration of the case of the assessee with regard to deduction under Section 80IB(10) of the Act. The learned Counsel for the assessee concedes that when the matter is being remitted, the Tribunal may also reconsider the issue about the interest u/s 234(B) and 234(C) afresh on its own merits in accordance with law. Revenue does not seriously dispute that the matter is required to be remitted for reconsideration of the issue of interest u/s 234(B) and 234(C) of the Act and also about deduction u/s 80IB(10) of the Act. The impugned order dated 21.02.2014 passed by the Tribunal is quashed and set aside. The Tribunal shall reconsider the case put forth by the assessee and the Revenue on all the issues afresh and on its own merits in accordance with law, expeditiously.

Summary

Issues involved:
1. Interpretation of interest u/s 234B and 234C for the assessment year 2010-11.
2. Consideration of legal implications of subsections in sections 115JA and 115JB.
3. Taxability of what is exempt u/s 80IB(10) under section 115JB.

Analysis:

Issue 1: Interpretation of interest u/s 234B and 234C for the assessment year 2010-11
The Revenue raised a substantial question of law regarding the chargeability of interest u/s 234B and 234C for the relevant assessment year. The Tribunal's interpretation was questioned based on the change in law related to the chargeability of interest in Minimum Alternate Tax (MAT) cases post the decision in JCIT Vs. Rolta. The Court acknowledged the need for reconsideration and remitted the matter to the Tribunal for fresh consideration on its own merits in accordance with the law.

Issue 2: Consideration of legal implications of subsections in sections 115JA and 115JB
The assessee framed substantial questions of law concerning the legal implications of subsections in sections 115JA and 115JB. The Tribunal failed to address the submission of the assessee under Sections 115JB and 80IB(10). The appeal was filed by the assessee for non-consideration of the deduction under Section 80IB(10) while the Revenue appealed regarding issues under Section 234(B) and 234(C) of the Income Tax Act. The Court decided to quash and set aside the impugned order, directing the Tribunal to reconsider all issues raised by both parties afresh and on its own merits in accordance with the law.

Issue 3: Taxability of what is exempt u/s 80IB(10) under section 115JB
The Tribunal did not address the issue of what is specifically exempt under section 80IB(10) being taxed under section 115JB. The matter was remitted to the Tribunal for reconsideration, along with the deduction under Section 80IB(10) and the interest u/s 234(B) and 234(C) on its own merits and expeditiously. Both parties agreed to the need for reconsideration of these issues by the Tribunal.