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TMI Blog2020 (2) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... tion claimed on eligible profit u/s 80HHC of the Act, on the basis of retrospective amendment to Section 115JB of the Act, by omitting clause (iv) to (vii) to explanation 1 by the Finance Act, 2011 with effect from 01/04/2005. At the time of payment of advance tax, said provisions were very much was on statute, and assessee was entitled to deduct amount claimed as deduction u/s 80HHC from book profit u/s 115JB of the Act. Therefore, the assessee has taken the advantage of provisions as was there in statue at the time of payment of advance tax and hence, the assesee cannot be expected to pay advance tax on the part of disputed amount. No interest can be levied u/s 234B of the Act, for shortfall in payment of advance tax on the basis of retro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d operation of jetties, and related infrastructure and investments. The assessee company has filed its return of income for AY 2005-06 on 28/10/2005, declaring total income at ₹ 1323,20,78,513/- under the normal provisions of the I.T.Act, 1961 and ₹ 5751,71,93,729/- u/s 115JB of the I.T.Act, 1961. The assesse has claimed deductions towards eligible profit u/s 80HHC of the I.T.Act, 1961. The Ld. AO had disallowed deductions claimed u/s 80HHC in view of sun-set clause u/s 80HHC(1B) of the I.T.Act, 1961. There was no retrospective amendment in section 115JB, either at the time of passing the order by the Ld. AO or CIT(A) with reference to deletion of clause (iv) to clause (vi) in Explanation (1) to section 115JB of the Act. The ame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) are that interest u/s 234B of the Act, cannot be charged as a consequence for an addition made to the book profit u/s 115JB of the I.T.Act, 1961, in view of retrospective amendment by the Finance Act, 2011 with retrospective effect from 01/04/2005. The Ld.CIT(A) after considering relevant submissions of the assessee and also, by following certain judicial precedents, including the decision of ITAT, in assesse own case for the very same AY 2005-06 in ITA No. 5247/Mum/2014, vide order dated 03/06/2016 held that interest u/s 234B ought not to have been charged by the Ld. AO in a situation, where such liability is increased on account of the retrospective amendment in the law, after the end of the relevant assessment year, since, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008 with retrospective effect from 01/04/2001. 7. We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. The issue involved in the present appeal, i.e, whether interest u/s 234B of the Act, could be levied for shortfall in payment of advance tax or not, when such shortfall in payment of taxes was on account of additions made to total income, consequent to retrospective amendment made to the Act, is no longer a res-integra . The co-ordinate bench of ITAT, in assessee own case for AY 2005- 06 in ITA No. 5247/Mum/2014, vide order dated 03/06/2016 had considered an identical issue, in light of additions made by the Ld. AO towards levy of interest u/s 234B of the Act, on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot have foreseen the liability, at the time of estimating his income for the purpose of payment of advance tax. In this case, additions was made to book profits computed u/s 115JB, towards deduction claimed on eligible profit u/s 80HHC of the Act, on the basis of retrospective amendment to Section 115JB of the Act, by omitting clause (iv) to (vii) to explanation 1 by the Finance Act, 2011 with effect from 01/04/2005. Further, at the time of payment of advance tax, said provisions were very much was on statute, and assessee was entitled to deduct amount claimed as deduction u/s 80HHC from book profit u/s 115JB of the Act. Therefore, the assessee has taken the advantage of provisions as was there in statue at the time of payment of advance ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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