9911796707
TMI Blog2017 (6) TMI 1088X X X X Extracts X X X X X X X X Extracts X X X X ..... sections 234B and 234C do not make any reference to section 115J/115JA. Section 234B lays down that where advance tax is required to be paid under section 208 and there is a failure on that if the amount of advance tax paid under section 210 is less than 90 per cent of the assessed tax, then, in that case the assessee is liable to pay interest. Section 234C refers to interest for deferment of advance tax. It says that if the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l to 30 per cent of such book profit. The object is to tax zerotax companies. 8. Section 115J was inserted by Finance Act,1987 with effect from 141988. this section was in force from 141988 to 3131991. After 141991, section 115JA was inserted by Finance Act of 1996 with effect from 141997. After insertion of section 115JA, Section 115JB was inserted by Finance Act,2000 with effect from 142001. 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, amendme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the total income as computed under the provisions of the Act was less than 30 per cent of the book profit. According to the Karnataka High Court, this entire exercise of computing income or the book profits of the company could be done only at the end of the financial year and hence the provisions of sections 207, 208, 209 and 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, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where 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. Thus, it can be concluded that interest under sections 234B and 234C shall be payable on failure to pay advance tax in respect of tax payable under section 115JA/115JB. For the aforesaid reasons, Circular No.13/2001, dated 9112001 issued by CBDT reported in 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 MAT provisions of section 115JB were not making advance tax payments. In the said circular, it has been clarified that section 115JB is a selfcontained code ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
