This appeal filed by
the Revenue on the ground that learned
CIT(A) erred on facts and in law in directing to delete the interest of Rs.2,24,28,120/- charged
u/s 234C of the Income-tax Act on the account of deferred payment of advance
tax ignoring the provisions Sec.115JB(5) of the Income-tax Act, which clearly
implies that in a case where tax is payable under the special provisions of
Income-tax Act (here MAT case), all provisions of the Income-tax Act shall
apply to the assessee and hence the provisions of section 207 to 211 are
applicable in the assessee’s case.
Neither
at the time of processing of
return or on the date of application u/s 154 of the Act and even at the time
of passing of impugned order, any contrary decision in respect of
levy of interest on tax computed on book profits u/s 115JB of the Act was
available nor pointed by the assessee before the lower authorities
and even before us, there was no such debatable issue as has been made
out by the ld. CIT(A) while referring to decisions rendered in the
context of altogether different provision of sec. 115J of the Act,
existed. In view of specific provisions of Sec. 115JB(5) of the Act and
in the light of view taken in the aforesaid decisions by the
Hon’ble Apex Court in Rolta India Ltd.(supra) , Saurashtra Kutch
Stock Exchange Limited (supra) and by the Hon’ble Karnataka High Court in
Jindal Thermal Power Co. Ltd. (supra), and Sankala Polymers P
Ltd(supra) as also observations of the Hon’ble Madras High Court in
Geetha Ramakrishna Mills P Ltd.(supra), the bench was of the opinion that
the AO is perfectly justified in levying interest u/s 234C on tax
determined on book profits calculated u/s 115JB of the Act and there was
no such debatable issue as has been made out by the ld. CIT(A).
As a
result the appeal was allowed in favour of Revenue. Date of order 09th
December 2011.
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