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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."