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TMI Blog2012 (1) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... its return of income declaring total income of ₹ 13,81,841/-. The assessment was completed under provisions of section 115JB determining book profit at ₹ 3,59,39,07,446/-, inter alia, after making addition of ₹ 72,02,91,091/- in respect of diminution in value of investment. The Assessing Officer levied interest amounting to ₹ 91,17,582/- under section 234C. The assessee preferred appeal before ld. CIT(Appeals) and ld. CIT(Appeals) dismissed the assessee's appeal relying on the Explanation to section 234C(i) of the Income Tax Act amended w.e.f. 1st April, 2007 (by Finance Act, 2006) observing that the said explanation clarifies that interest under section 234C is chargeable when tax liability is computed as per p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hermal Power Co. Ltd. -vs.- CIT (229 ITR 383 (SC); (ii) Jute Corporation of India Ltd. (187 ITR 688) (SC); (iii) Ahmedabad Electricity Co. Ltd. (199 ITR 351)(Bom.)(FB). 3. Having heard both the sides, we find that the additional ground of appeal raised by the ld. counsel for the assessee is purely legal in nature and no fresh scrutiny of facts is required. Therefore, following the decision in the case of N.T.P.C. (supra), we admit the additional ground of appeal. 4. Ld. senior counsel for the assessee, Shri R.N. Bajoria submitted that while computing book profit, diminution in value of investment was debited against the book profit following the decision of ITAT, Special Bench, Kolkata in the case of JCIT -vs.- Usha Martin Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 208 on any of the due dates for payment of the advance tax instalments and there is retrospective amendment of the law long after the close of the financial year imposing liability for tax? 4.1. Ld. senior counsel submitted that while question no. (a) was answered against the assessee in view of the decision of the Hon'ble Supreme Court in the case of Joint CIT -vs.- Rolta India Ltd. reported in [2011] 330 ITR 470 (SC), but so far as question no. (b) was concerned, it was decided in favour of assessee by, inter alia, observing at para 11 as under :- 11. A mere reading of those provisions leaves no doubt that the advance tax is an amount payable in advance during any financial year in accordance with the provisions of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue as prevailing on date of filing of return. Explanation 1 to section 115JB deals with adjustment required to be made while computing book profit. Clause (a) to (i) of the said Explanation explains various items, which have to be added to the profit as shown in the Profit Loss A/c. Clause (i) of the said Explanation was substituted by the Finance (No. 2) Act, 2009 with retrospective effect from 1st April, 2001 and accordingly, the profit as shown in the Profit Loss A/c. was to be increased by the amount or amounts set aside as provision for diminution in the value of any asset. Therefore, the returns of income filed prior to this amendment were governed by law as prevailed on the date of filing of return. The decision of Hon'ble Su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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