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TMI Blog2015 (3) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... f Income Tax v. Rolta India Limited, (2011 (1) TMI 5 - SUPREME COURT OF INDIA), wherein an identical issue was answered against the assessee. - Decided in favour of revenue. - T. C. (A). No. 1514 of 2007 - - - Dated:- 18-2-2015 - R. Sudhakar And R. Karuppiah,JJ. For the Appellant : Mr. Venkat Narayanan for M/s. Subbaraya Aiyar For the Respondent : Mr. M. Swaminathan JUDGMENT (Delivered by R. Sudhakar, J.) The assessee has filed this appeal challenging the order of the Income Tax Appellate Tribunal 'C' Bench, Chennai, dated 31.5.2007 made in I.T.A.No.1092/Mds/2003 for the assessment year 2000-2001, and the same was admitted on the following question of law: Whether, on the facts and in the circumstances o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has to pay advance tax on its current income on or before 15th of June and the tax paid is less than 15 per cent. of the tax due on the returned income or the amount of the advance tax paid on or before 15th of September is less than 45 per cent. of the tax due on the returned income or the amount of such advance tax paid on or before 15th of December is less than 75 per cent. of the tax due on the returned income, then the assessee shall be liable to pay interest at the specified rate on the amount of the shortfall from 15 per cent. or 45 per cent. or 75 per cent., as the case may be, of the tax due on the returned income. 7. In our view, section 115J/115JA are special provisions. Section 207 envisages that tax shall be payabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2000 with effect from April 1, 2001. 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 115JA(4) and section 115JB(5)). Similarly, amendments have been made in the relevant Finance Acts providing for payment of advance tax under sections 115JA and 115JB. So far as interest leviable under section 234B is concerned, the section is clear that it applies to all companies. The pre-requisite condition for applicability of section 234B is that the assessee is liable to pay tax under section 208 and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 210 (predecessors of sections 234B and 234C) were not applicable until and unless the accounts stood audited and the balance-sheet stood prepared, because till then even the assessee may not know whether the provisions of section 115J would be applied or not. The court, therefore, held that the liability would arise only after the profit is determined in accordance with the provisions of the Companies Act, 1956 and, therefore, interest under sections 234B and 234C is not leviable in cases where section 115J applied. This view of the Karnataka High Court in Kwality Biscuits Ltd. was not shared by the Gauhati High Court in Assam Bengal Carriers Ltd. v. CIT reported in [1999] 239 ITR 862 and the Madhya Pradesh High Court in Itarsi Oil and Fl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x in respect of tax payable under section 115JA/115JB. For the aforestated reasons, Circular No. 13 of 2001 dated November 9, 2001 issued by the Central Board of Direct Taxes reported in [2001] 252 ITR (St.) 50 has no application. Moreover, in any event, para 2 of that Circular itself indicates that a large number of companies liable to be taxed under the MAT provisions of section 115JB were not making advance tax payments. In the said circular, it has been clarified that section 115JB is a self-contained code and thus, all companies were liable for payment of advance tax under section 115JB and consequently the provisions of sections 234B and 234C imposing interest on default in payment of advance tax were also applicable. 4. In view o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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