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TMI Blog2017 (3) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated 23.08.2001 passed by the Income Tax Appellate Tribunal, Ahmedabad (hereinafter referred to as "the Tribunal") has been quashed and set aside, and the question has been answered in favour of the revenue and against the assessee. It has been further held that the Tribunal had erred in holding that the interest under sections 234B and 234C is not chargeable if the total income is assessed to tax under section 115J of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). 3. Vide order dated 23.08.2001, the Tribunal had allowed the appeal of the assessee by following the decision of the Karnataka High Court in the case of Kwality Buscuits Ltd. v. Commissioner of Income Tax, (2000) 243 ITR 519 (Karnataka) and held that no in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt had after considering the provisions of section 115J of the Act, had held that since the entire exercise of computing the income or that of book profit could only be at the end of the financial year, the provisions of sections 207, 208, 209 and 210 of the Act cannot be made applicable unless and until the accounts are audited and the balance sheet is prepared. Even the assessee may not know whether the provisions of section 115J of the Act would be applicable or not. The court held that the words "for the purposes of this section" in the explanation to section 115J(1A) are relevant and cannot be construed to extend beyond the computation of liability of tax and was, accordingly, of the view that the Tribunal was not justified in direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here such companies defaulted in payment of advance tax in respect of tax payable under section 115JB, it was liable to pay interest under sections 234B and 234C of the Act. It was submitted that thus, the Supreme Court in the case of Rolta India Limited (supra) has not interfered with its earlier decision in the case of Kwality Biscuits Ltd. (supra). It was submitted that the Supreme Court after having said that the decision of the Karnataka High Court in Kwality Biscuits Ltd. (supra) stood affirmed, has not disturbed the proposition of law laid down therein and hence, there is a re-affirmation of the decision of the Karnataka High Court in the case of Kwality Biscuits Ltd. (supra). It was submitted that under the circumstances, the decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endered in the context of the provisions of sections 115JA and 115JB of the Act, whereas the facts of the present case relate to the provisions of section 115J of the Act. The decision of the Karnataka High Court in the case of Kwality Biscuits Ltd. (supra) which was affirmed by the Supreme Court was delivered in the context of section 115J of the Act. A conjoint reading of section 115J of the Act as it stood at the relevant time, with sections 115JA and 115JB of the Act reveals that insofar as sections 115JA and 115JB are concerned, they are a complete code in themselves. Sub-section (4) of section 115JA and sub-section (5) of section 115JB of the Act specifically provide that save as otherwise provided in the section, all other provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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