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TMI Blog2015 (1) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... tax on the total income determined u/s 143(1) or u/s 143(3) as reduced by the amount of tax deducted or collected at source - there is no exclusion of Section 115J/115JA in the levy of interest u/s 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 - the assessee was liable to pay interest u/s 234B and 234C of the Act in respect of tax determined on the basis of Section 115JA – Decided in favour of revenue. - TAX APPEAL NO. 676 of 2006 With TAX APPEAL NO. 677 of 2006 - - - Dated:- 27-11-2014 - MR. KS JHAVERI AND MR. K.J.THAKER, JJ. MR SUDHIR M MEHTA, ADVOCATE FOR THE APPELLANT COMMON ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE K.J.THAKER) 1. The Tax Appeal No.676 of 2006 u/s.260A of the Income tax Act, 1961 is filed against the judgment and order dated 29.09.2005 of the Income Tax Appellate Tribunal passed in ITA No.1892/Ahd/2001. 2. The Tax Appeal No.677 of 2001 u/s.260A of the Incometax Act, 1961 is filed against the judgment and order dated 11.11.2005 of the Income Tax Appellate Tribunal passed in ITA No.88/Ahd/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 1.-In this section, assessed tax means the tax on the total income determined under subsection (1) of section 143 and where a regular assessment is made, the tax on the total income determined under such regular assessment as reduced by the amount of,( i) any tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income; (ii) any relief of tax allowed under section 90 on account of tax paid in a country outside India; (iii) any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section; (iv) any deduction, from the Indian Incometax payable, allowed under section 91 on account of tax paid in a country outside India; and (v) any tax credit allowed to be set off in accordance with the provisions of section 115JAA [or section 115JD]] Explanation 2.Where, in relation to an assessment year, an assessment is made for the first time under section 147 [or section 153A], the assessment so made shall be regarded a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cribed form specifying the sum payable and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly; (ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded. (5) The provisions of this section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989 and subsequent assessment years.] [Interest for deferment of advance tax. 234C. (1) [Where in any financial year,( a) the company which is liable to pay advance tax under section 208 has failed to pay such tax or (i) the advance tax paid by the company on its current income on or before the 15th day of June is less than fifteen per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of September is less than fortyfive per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less than seventy five per cent of the tax due on the returned income, then, the company shall be liable to pay simple interest at the rate of [on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India; (iii)any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section; (iv) any deduction, from the Indian Incometax payable, allowed under section 91 on account of tax paid in a country outside India; and (v) any tax credit allowed to be set off in accordance with the provisions of section 115JAA [or section 115JD]]. (2) The provisions of this section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989 and subsequent assessment years.]] 7. The said question is raised in Tax Appeal No.677/2006. It appears from the decision of the Apex Court that the decision of the Tribunal will have to be reversed. The Apex Court in case of Joint Commissioner of Income Tax V. Rolta India Ltd., reported in (2011) 330 ITR 470 (SC) held as under: It is clear from reading Sections 115JA and 115JB that the question whether a company which is liable to pay tax under either provision does not assume importance because specific provision(s) is made in the section saying that all other provisions of the Act shall apply to the MAT Company (Section 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 115JA and 115JB. So far as interest leviable under Section 234B is concerned, the section is clear that it applies to all companies. The prerequisite condition for applicability of Section 234B is that assessee is liable to pay tax under Section 208 and the 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. 3. Tax Appeal since raises no other question of law, same requires no further consideration. Tax Appeal is dismissed. 9. The said issue is also decided by the decision of Hon'ble Punjab and Haryana High Court in the case of Swaraj Mazda Ltd. V. Commissioner of Incometax, where the issue was whether the assessee was liable to pay interest under sections 234B and 234C in respect of tax determined on basis of Section 115JA was answered in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4C of the Act can be charged in respect of income which has been determined on the basis of book profit under section 115JA of the Act. 5. The matter is no longer res integra. This Court in CIT v. Nahar Spg. Mills Ltd. [2011] 339 ITR 557/[2012] 209 Taxman 143/20 taxmann.com 792, following the judgment of the Hon'ble Supreme Court in Jt. CIT v. Rolta India Ltd. [2011] 330 ITR 470/196 Taxman 549/9 taxmann.com 36 came to the conclusion that interest under Sections 234B and 234C of the Act would be payable on failure to pay advance tax in respect of tax payable under Section 115JA/115JB of the Act. 6. In view of the above, it is held that the appellant was liable to pay interest under Sections 234B and 234C of the Act in respect of tax determined on the basis of Section 115JA of the Act. The substantial questions of law are answered against the assessee and in favour of the revenue. Consequently, all the three appeals are dismissed. 10. Since the question of law is already concluded vide the judgments rendered in the above decisions, we are not assigning elaborate reasons for disposing of these appeals. Accordingly, the questions of law are answered in fav ..... 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