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TMI Blog2011 (9) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... e expression “assessed tax” is defined to mean the tax on the total income determined under Section 143(1) or under Section 143(3) as reduced by the amount of tax deducted or collected at source. Thus, there is no exclusion of Section 115J/115JA in the levy of interest under Section 234B. The expression “assessed tax” is defined to mean the tax assessed on regular assessment which means the tax determined on the application of Section 115J/115JA in the regular assessment. - Assessee is liable to pay Interest u/s 234B / 234C X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act on 29.6.1998 and demand of Rs.4,14,976/- under Section 234B of the Act and Rs.1,78,958/- under Section 234C of the Act was created on account of interest. The assessee filed an application under Section 154 of the Act on 27.7.1998 for rectification on the issue of charge of interest along with other issues. The prayer for rectification on the issue of charging of interest was declined whereas relief was allowed on other issue. Accordingly, the interest charged under Sections 234B and 234C of the Act was reduced. The case was taken up for scrutiny and the assessment was completed under Section 143(3) of the Act on the same income. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [in short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r on current income in accordance with the scheme provided in Sections 208 to 219 (both inclusive) in respect of the total income of the assessee that would be chargeable to tax for the assessment year immediately following that financial year. Section 215 (5) of the Act defined what is "assessed tax", i.e., tax determined on the basis of regular assessment so far as such tax relates to income subject to advance tax. The evaluation of the current income and the determination of the assessed income had to be made in terms of the statutory scheme comprising Section 115J/115JA of the Act. Hence, levying of interest was inescapable. The assessee was bound to pay advance tax under the said scheme of the Act. Section 115J/115JA of the Act were sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reduced by the amount of tax deducted or collected at source. Thus, there is no exclusion of Section 115J/115JA in the levy of interest under Section 234B. The expression "assessed tax" is defined to mean the tax assessed on regular assessment which means the tax determined on the application of Section 115J/115JA in the regular assessment. 9. The question which remains to be considered is whether the assessee, which is a MAT Company, was not in a position to estimate its profits of the current year prior to the end of the financial year on 31st March. In this connection the assessee placed reliance on the judgment of the Karnataka High Court in the case of Kwality Biscuits Ltd. v. CIT reported in (2000) 243 ITR 519 and, according to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported in (2003) 130 TAXMAN 730 which decided the issue in favour of the Department and against the assessee. It appears that none of the assesses challenged the decisions of the Gauhati High Court, Madhya Pradesh High Court as well as Bombay High Court in the Supreme Court. However, it may be noted that the judgment of the Karnataka High Court in Kwality Biscuits Ltd. was confined to Section 115J of the Act. The Order of the Supreme Court dismissing the Special Leave Petition in limine filed by the Department against Kwality Biscuits Ltd. is reported in (2006) 284 ITR 434. Thus, the judgment of Karnataka High Court in Kwality Biscuits stood affirmed. However, the Karnataka High Court has thereafter in the case of Jindal Thermal Power Compa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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