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TMI Blog2008 (2) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 115J of the Act. The assessee, a tea plantation company, filed income-tax return for the assessment year 1990-91 declaring a loss of above Rs. 1.7 crores. Since the total income as computed under the provisions of the Act was less than 30 per cent, of the book profit, assessment of the respondent was made treating 30 per cent. book profit as deemed income under section 115J of the Act. After determining the tax payable, the Assessing Officer levied interest under sections 234B and 234C of the Act for non-payment/short payment of advance tax. Even though the assessee contested the levy of interest in first appeal, the same was unsuccessful. However, on second appeal, the Tribunal cancelled the interest levied under both sections, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deemed income assessable under the Act, advance tax is payable and the failure of remittance of it in terms of Chapter XVII of the Act attracts interest under sections 234B and 234C of the Act. 4. Learned counsel for the assessee heavily relied on the Karnataka decision above referred and contended that since the civil appeal filed against the same is dismissed, the decision of the Supreme Court is binding precedent on this court. We find force in this contention, because the decision of the Supreme Court in Saurashtra Oil Mills Association v. State of Gujarat [2002] 3 SCC 202 referred to by the Madras High Court was a case of dismissal of a special leave petition at the admission stage by the Supreme Court. However, the Supreme Court in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in accordance with the provisions of sections 208 to 219 (both inclusive), in respect of the total income of the assessee which would be chargeable to tax for the assessment year immediately following that financial year, such income being hereafter in this Chapter referred to as 'current income'," 7. It is clear from the above that advance tax is payable on the chargeable portion of the total income of the previous year which is referred to as current income. While section 208 prescribes minimum amount of income on which tax is not payable, section 209 provides for computation of advance tax. Clauses (a) to (c) of section 209 provides for estimation of current income and payment of income-tax at the rates in force for the financial year. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pose of assessment under section 115J has to be arrived at by making adjustments in the profit and loss account prepared under the Companies Act in terms of the Explanation provided under section 115J(1A) of the Act. As already stated, there is no provision either under Chapter XVII or Chapter XII-B requiring the assessee to estimate book profit and to remit advance tax thereon. While the provision for advance tax under Chapter XVII is on estimated income as computed by the assessee in accordance with the provisions of the Act, assessment on deemed income under section 115J is on the actual income and estimation for payment of advance tax is not visualised at all. Even though by later amendment, sections 115JA(4) and 115JB(5) provide that a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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