Madras High Court
M/S. Rajkumar Impex Pvt.Ltd vs The Deputy Commissioner Of Income Tax on 4 September, 2018
Author: T.S.Sivagnanam
Bench: T.S.Sivagnanam, V.Bhavani Subbaroyan
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 04.09.2018
CORAM :
THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM
and
THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN
T.C.A.No. 1257 of 2008
M/s. Rajkumar Impex Pvt.Ltd.,
B 603, Keshav Durga Apartments,
No. 1, East Avenue,
Keshav Perumal Puram, R.A. Puram,
Chennai 600 028. ... Appellant
-vs-
The Deputy Commissioner of Income Tax,
Company Circle V(3),
Chennai 600 034. ... Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, 'B' Bench, Chennai dated 27.09.2007 in ITA No.299/Mds/2004 for the Assessment Year 2000-2001.
For Appellant : Mr.R.Venkatanarayanan.
For Respondent : Mrs.R.Hemalatha.
******
J U D G M E N T
[Delivered by T.S.Sivagnanam, J.] This appeal by the assessee is directed against the order dated 27.09.2007 of the Income Tax Appellate Tribunal, 'B' Bench, Chennai in ITA.No.299/Mds/2004 for the assessment year 2000-2001.
2.The appeal has been admitted on the following substantial question of law vide order dated 19.08.2008:
Whether, on the facts and circumstances of the case, the Tribunal was right in holding that interest under Section 234B can be levied for default in payment of advance tax when the income is computed under Section 115JA of the Act?
3.The learned counsel for the assessee fairly submits that the above substantial question of law has been answered against the assessee by the Hon'ble Supreme Court in the case of Joint Commissioner of Income Tax vs. Rolta India Ltd., reported in (2011) 330 ITR 470. The operative portion of the decision reads as follows:
8. .... It is clear from reading ss. 115JA and 115JB that the question whether a company which is liable to pay tax under either provision does not assume importance because specific provisions(s) is made in the section saying that all other provisions of the Act shall apply to the MAT company [s. 115JA(4) and s. 115JB(5)]. Similarly, amendments have been made in the relevant Finance Acts providing for payment of advance tax under ss. 115JA and 115JB. So far as interest leviable under s.234B is concerned, the section is clear that it applies to all companies. The pre-requisite condition for applicability of s. 234B is that assessee is liable to pay tax under s. 208 and the expression assessed tax is defined to mean the tax on the total income determined under s. 143(1) or under s. 143(3) as reduced by the amount of tax deducted or collected at source. Thus, there is no exclusion of s. 115J/115JA in the levy of interest under s. 234B. The expression assessed tax is defined to mean the tax assessed on regular assessment which means the tax determined on the application of s. 115J/115JA in the regular assessment.
9. .... It appears that none of the assessees challenged the decisions of the Gauhati High Court, Madhya Pradesh High Court as well as Bombay High Court in the Supreme Court. However, it may be noted that the judgement of the Karnatka High Court in Kwality Biscuits Ltd. (supra) was confined to s. 115J of the Act. The order of the Supreme Court dismissing the Special Leave Petition in limine filed by the Department against Kwality Biscuits Ltd. (supra) is reported in CIT vs. Kwality Biscuits Ltd. (2006) 205 CTR (SC) 122: (2006) 284 ITR 434 (SC). Thus, the judgement of Karnataka High Court in Kwality Biscuits (supra) stood affirmed. However, the Karnataka High Court has thereafter in the case of Jindal Thermal Power Co. Ltd. vs. Dy. CIT (2006) 203 CTR (Kar) 381: (2006) 154 Taxman 547 (Kar) distinguished its own decision in case of Kwality Biscuits Ltd. (supra) and held that s. 115JB, with which we are concerned, is a self-contained code pertaining to MAT, which imposed liability for payment of advance tax on MAT companies and, therefore, where such companies defaulted in payment of advance tax in respect of tax payable under s. 115JB, it was liable to pay interest under ss.234B and 234C of the Act. Thus, it can be concluded that interest under ss. 234B abd 234C shall be payable on failure to pay advance tax in respect of tax payable under s. 115JA/115JB. For the aforestated reasons, Circular No. 13 of 2001, dt. 9th Nov., 2001 issued by CBDT reported in (2001) 171 CTR (St) 45: (2001) 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 s. 115JB were not making advance tax payments. In the said circular, it has been clarified that s. 115JB is a self-contained code and thus, all companies were liable for payment of advance tax under s. 115JB and consequently provisions of ss. 234B and 234C imposing interest on default in payment of advance tax were also applicable.
4. By applying the above decision to the case on hand, the appeal stands dismissed and the substantial question of law is answered in favour of the Revenue and against the assessee. No costs.
[T.S.S., J.] [V.B.S., J.]
04.09.2018
jen/sra
To
1.The Asst. Registrar,
Income Tax Appellate Tribunal,
'B' Bench, Chennai.
2.The Commissioner of Income Tax (Appeals)-V,
Chennai-34.
3.The Deputy Commissioner of Income Tax,
Company Circle V (3), Chennai-34.
T.S.Sivagnanam, J.
and
V.Bhavani Subbaroyan, J.
jen/sra
T.C.A.No.1257 of 2008
04.09.2018