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TMI Blog2016 (2) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... e IT Act. 3. The learned CIT(A) ought to have appreciated that though the relevant amendment to Sec.115JB was brought through Finance Act, 2011, the assessee has failed to file the revised turn of Income withdrawing the 80HHC claim from the book profit till the issue is noticed in the scrutiny proceedings. 4. The CIT(A) ought to have appreciated that the charging of interest u/s. 234B is mandatory which is with reference to 'assessed tax' an there is no other provision in the Act to give relief for the error/failure whether voluntary or involuntary by the assessee. 5. Any other ground(s) that may be urged at the time of hearing." 3. Facts necessary for the disposal of the appeal are stated in brief. The assessee company is engaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Rules, by observing that the expenditure was incurred for earning dividend income, which is exempt under S.10(23) of the Act, and therefore, it attracts disallowance under S.14A of the Act. 4. The assessee submitted before the CIT(A) that interest is not chargeable under S.234B and S.234C of the Act, since the assessee cannot be expected to do an impossibility of paying advance tax on an issue which was otherwise covered in favour of the assessee by the decision of the Apex Court. In other words, the assessee company paid advance tax by estimating its income in accordance with the then prevailing legal position, and it is only on account of subsequent retrospective amendment in law that the advance tax paid by the assessee company fell s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same should not entail payment of interest. (a) Star India Pvt. Ltd. V/s. CCE (280 ITR 321)-SC (b) Emami Ltd. Vs. CIT (337 ITR 470)-Cal. (c) Sankhla polymers Pvt. Ltd. (352 ITR 452) He accordingly set aside the interest charged by the Assessing Officer. 7. Aggrieved, Revenue is in appeal before us contending that interest chargeable under S.234B and S.234C is automatic upon computation of income and hence, the first appellate authority has no power to cancel such interest charged by the Assessing Officer. 8. On the other hand, learned counsel for the assessee relied upon the decision of the Hon'ble Karnataka High Court in the case of Quality Biscuits (284 ITR 434) to submit that interest under S.234B and S.234C cannot be c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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