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TMI Blog2006 (1) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany had filed its return of income showing nil income which was processed under section 143(1) of the Act under MAT on book profit of Rs. 4,81,04,048. As a result of this, a demand of Rs. 1,93,620 was raised as against the claim for refund of Rs. 22,710 made by the assessee. The demand was created due to the levy of interest under section 234C of the Act. The assessee filed an application under section 154 of the Act requesting the Assessing Officer to delete the interest on the ground that such levy was not permissible when income was determined under section 115JA of the Act. However, the Assessing Officer was not convinced with the argument of the assessee and rejected the application of the assessee. In doing so, the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to pay interest for the entire period to the extent there was short fall in payment of advance tax calculated as per the income returned by the assessee including capital gains from September 15, 1999, when the first instalment of advance tax became due and the assessee has failed to pay the minimum required percentage of advance-tax on the basis of 30% of the tax on the basis of the returned income in terms of sub-section (1) of section 234C of the Act. The assessee contended that capital gain arose after March 15, 2000, when the date of payment of the last instalment of advance tax had already expired. The assessee could not have paid advance tax on such capital gains arising after March 15, 2000. Since the assessee had not paid th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above and from the various observations made by the High Court in the judgment, it is clear that the Assessing Officer had no jurisdiction to determine the liability of interest otherwise than as per the claims made by the assessee under section 143(1) of the Act. The Hon ble Rajasthan High Court was dealing with a matter pertaining to assessment year 2000-01 and in the present appeal also we are concerned with assessment year 2000-01. At page 751 (of ITR 264), the court observed that with effect from 1-6-1999, sub-section (1) of section 143 does not contain any provisions for any adjustment in respect of any claims made by the assessee in his return. At page 752 of the report, the court observed that the question of any determination a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. However, the same analogy as is applicable to the issue of capital gains, will apply here also with equal force. It is only at the end of the accounting year, the assessee-company will come to know whether it is liable to pay tax on income determined under the provisions of the Act or that determined under section 115JA of the Act. Therefore, it cannot be expected of the assessee to determine the advance tax payable on its current income. This is not to suggest that in all company cases there is no liability to pay advance tax at all during a particular financial year. If this analogy is to be applied in such a sweeping manner, then it will nullify the provisions of advance tax qua the companies. This cannot be the intention of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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