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2018 (10) TMI 1357 - HC - Income TaxMAT - Levy of interests u/s 234B and 234C while computing the MAT under the deeming provisions of Section 115JB - Held that - Substantial question of law, has been decided against the assessee by the Hon ble Supreme Court in the case of JCIT Vs. Rolta India Limited 2011 (1) TMI 5 - SUPREME COURT OF INDIA as held Section 115JB is a self-contained code pertaining to MAT, which imposed liability for payment of advance tax on MAT companies and, therefore, where such companies defaulted in payment of advance tax in respect of tax payable under Section 115JB, it was liable to pay interest under Sections 234B and 234C of the Act. 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 aforestated reasons, Circular No. 13/2001 dated 9.11.2001 issued by CBDT has no application. - Decided against assessee.
Issues:
Challenge to order passed by Income Tax Appellate Tribunal for assessment year 2002-03 - Substantial questions of law regarding levy of interests under Sections 234B and 234C for MAT computation - Applicability of advance tax provisions in Chapter XII B - Mandate to treat book profits as total income under Section 211. Analysis: The High Court heard the appeal challenging the Income Tax Appellate Tribunal's order for the assessment year 2002-03. The appeal was admitted based on substantial questions of law related to the levy of interests under Sections 234B and 234C while computing the Minimum Alternate Tax (MAT) under the deeming provisions of Section 115JB of the Income Tax Act. The questions raised included the justification of interests under these sections, especially in the context of advance tax provisions in Chapter XII B and the treatment of book profits as total income under Section 211. The counsel for the assessee acknowledged that the substantial questions of law were interconnected and suggested focusing on the first substantial question alone. It was noted that the legal issue in question had been previously decided against the assessee by the Supreme Court in a specific case. The Court considered the decision in the case of JCIT Vs. Rolta India Limited, where the issue of estimating profits for MAT companies prior to the end of the financial year was discussed. The Court highlighted the differing views of various High Courts on the matter, emphasizing the applicability of Sections 234B and 234C in cases where Section 115J or 115JB applied. Referring to the decision in Rolta India Limited, the Court dismissed the tax case appeal, ruling in favor of the Revenue. The judgment emphasized the self-contained nature of Section 115JB regarding MAT provisions, stating that companies liable under this section were required to make advance tax payments, and failure to do so would result in the imposition of interests under Sections 234B and 234C. The Court also mentioned the applicability of Circular No. 13/2001 issued by CBDT, which clarified the liability for payment of advance tax under Section 115JB and the corresponding interest provisions. Furthermore, the Court cited a previous case involving M/s. Tamilnadu Magnesite Limited, where a similar decision was reached based on the principles established in the Rolta India Limited case. Ultimately, the Court's decision was based on the interpretation of relevant provisions and judicial precedents, leading to the dismissal of the appeal against the assessee, with no costs awarded.
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