Income Tax Appellate Tribunal - Delhi
Pragati Power Corporation Ltd., New ... vs Assessee on 27 September, 2010
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "F" NEW DELHI
BEFORE SHRI R.P. TOLANI AND SHRI K.G. BANSAL
ITA Nos. 5509/Del/2010
Asstt. Yr: 2005-06
M/s Pragati Power Corpn. Ltd. Vs. DCIT Cir. 14(1),
Himadri, Rajghat Power House, New Delhi.
Complex, New Delhi-110002.
PAN/GIR No. AACCP8035F
(Appellant) ( Respondent )
Appellant by : Shri V. Raja Kumar AR
Respondent by : Ms. Y. Kakkar Sr. DR
ORDER
PER R.P. TOLANI, J.M :
This is assessee's appeal against CIT(A)'s order dated 27-9-2010, relating to A.Y. 2006-07 . Sole ground raised is as under.
"The Ld. CIT(A) has erred in dismissing the ground of appeal regarding charging interest u/s 234C of the Income Tax Act, 1961 in respect of tax on book profits u/s 115JB."
2. Learned DR, at the out set, contends that the issue in question is squarely covered against the assessee by the Hon'ble Supreme Court decision dated 7-1-2011 in the case of JCIT Vs. M/s Rolta India Ltd. 2011- ITOL-02-SC-IT-LB, wherein relevant judgments of various High Courts have been considered by following observations:
2 ITA 5509/Del/2010 Pragati Power Corpn. Ltd.
"This view of the Karnataka High Court in Kwality Biscuits Ltd. was not shared by the Gauhati High Court in Assam Bengal Carriers Ltd. v. CIT and Madhya Pradesh High Court in Itarsi Oil and Flours (P) Ltd. Vs. CIT as also by the Bombay High Court in the case of CIT v. Kotak Mahindra Finance Ltd., which decided the issue in favour of the Department and against the assessee. It appears that none of the assessees challenged the decisions of eh Gauhati High Court, Madhya Pradesh High Courts as well as Bombay High Court in the Supreme Court. However, it may be noted that the judgment of the Karnataka High Court in Kwality Biscuits Ltd. was confined to Section 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. is reported in (2006-ITOL-189-SC-IT). Thus, the judgment of Karnataka High Court in Kwality Biscuits stood affirmed.
However, the Karnataka High Court has thereafter in the case of Jindal Thermal Power Company Ltd. v. Dy. CIT reported in (2006-ITOL-302-HC-KAR-IT) distinguished its own decision in case of Kwality Biscuits Ltd. and held that Section 115JB, (which is the issue here), 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 section 115JB, it was liable to pay interest under section 234B and 234C of the Act."
2.1. After considering all the judgments, Hon'ble Supreme Court held as under:
"Thus, it can be concluded that interest under section 234B and 234C shall be payable on failure to pay advance tax in respect of tax payable under section 115JA/115JB."
3. Learned counsel for the assessee is heard.
3 ITA 5509/Del/2010 Pragati Power Corpn. Ltd.
4. The issue in question about payment of advance tax and consequent levy of interest u/s 234C due to non-payment or delayed payment of advance tax liability is settled by Hon'ble Supreme Court in the case of M/s Rolta India Ltd. (supra), holding that the assessee was liable to pay interest u/s 234B and 234C. Respectfully following Hon'ble Supreme Court judgment, we uphold the order of CIT(A).
5. In the result, assessee's appeal is dismissed. Order pronounced in open court on 06-01-2012.
Sd/- Sd/- ( K.G. BANSAL ) ( R.P. TOLANI) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 06-01-2012. MP Copy to : 1. Assessee 2. AO 3. CIT 4. CIT(A) 5. DR